OCDE - Financing SMEs and Entrepreneurs 2026 - Israel de 2026

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FINANCING SMES AND ENTREPRENEURS 2026: ISRAEL © OECD 2026

Key facts on SME financing As of 2024, there were 6 85 thousand businesses in Israel, 99.5% of which were SMEs (i.e., companie s employing up to 100 workers). In an average year, 55 000-60 000 businesses are registered and about 40 000 closed down formally. In 2024, 61 000 new companies were established and 48 000 were closed. Removal of government support measures might result in many enterprises shutting down in the postcrisis period. From 2023 to 2024, interest rates for SMEs decreased while the interest rate for large firms increased. The average interest rate for SMEs decreased from 7.31% to 7.1%, while the interest rates for large firms rose from 5.81% to 6.09%. Furthermore, the interest rate spread narrowed from 1.5% to 1.01 %. In 2024, Israeli banks provided NIS 365.96 billion in credit to SMEs, an increa se of 6.04% compared to 2023 (NIS 345.1 billion). The share of SMEs in the credit granted by the bank s was 44.21% of total business credit, representing a decrease compared to the previous year which registered a share of 45.89%.This is an even further decline compared to 2022, when it stood at 49.45%. This c ontinues an ongoing decline that has persisted since 2017, when the share peaked at 59.88%. In total, betw een 2010 and 2024, nominal bank credit to SMEs grew by 74%. In 2024, total venture capital investment in Israel reached USD 9.6 billion, representing a 39% increase over the USD 6.9 billion raised in 2023, and a 15% rise in the number of report ed deals to 453. The total

In 2024, total venture capital investment in Israel reached USD 9.6 billion, representing a 39% increase over the USD 6.9 billion raised in 2023, and a 15% rise in the number of report ed deals to 453. The total number of known deals for 2024 was 694, but IVC estimates that between 1 000 and 1 100 trans actions were completed during the year. Despite the backdrop of war and global macroeconomic challenges, the Israeli high-tech sector saw renewed momentum, with Q4 2024 marking the strongest qu arter of the year with 122 reported rounds, including five mega deals that accounted for 36% of the capital raised that quarter. SME and entrepreneurship policies in Israel are primarily designed by the Ministry of Economy and Industry and implemented by the Israel Innovation Authority (IIA) and the Small and Medi um Business Agency (SMBA). While the IIA (formerly known as the Chief Science Office) focuses on leading technology-based startups and SMEs, the SMBA caters to all SMEs in Israel’s main economic s ectors through business management training and coaching, subsidised access to finance (for example, through the national loan guarantee programme) and the work of the business development centres (MAOF centres).

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FINANCING SMES AND ENTREPRENEURS 2026: ISRAEL © OECD 2026

Table 1. Scoreboard for Israel Indicator Unit 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Debt Outstanding business loans, SMEs ILS billion 169.3 171.2 161.6 173.8 177.7 187.0 186.7 211.9 244.6 256.6 266.1 281.8 273.7 280.1 314.2 344.6 345.1 366.0

Outstanding business loans, total ILS billion 425.2 438.9 458.6 450.4 445.7 447.9 415.6 422.8 415.6 435.5 444.4 476.9 488.2 512.4 591.9 696.9 752.0 827.8 Share of SME outstanding loans % of total outstanding 40.90 37.14 38.01 39.60 38.75 41.52 41.89 47.31 58.86 59.61 59.88 59.09 56.07 54.67 53.09 49.45 45.89 44.21 Outstanding short-term loans, SMEs ILS billion

147 148 168 189 201 213 Outstanding long-term loans, SMEs ILS billion

131 133 146 156 144 153 Share of short-term SME lending % of total SME lending

53.62 52.66 53.41 54.73 58.38 58.16 Government loan guarantees, SMEs ILS billion 0.03 0.02 0.12 0.16 0.12 0.12 0.22 0.23 0.26 0.18 0.14 0.17 0.22 4.17 0.36 0.12 0.50 0.48 Government guaranteed loans, SMEs ILS billion 0.17 0.11 0.76 1.03 0.89 1.06 1.95 2.11 2.34 1.84 1.62 1.62 1.78 21.95 2.63 0.92 4.45 4.04 Non-performing loans, total % of all business loans

2.77 2.20 1.57 1.25 1.55 1.76 1.21 0.83 1.19 0.71 Non-performing loans, SMEs % of all SME loans

Non-performing loans, total % of all business loans

2.77 2.20 1.57 1.25 1.55 1.76 1.21 0.83 1.19 0.71 Non-performing loans, SMEs % of all SME loans

2.13 1.77 1.50 1.31 1.52 1.77 1.33 1.03 1.43 1.19 Interest rate, SMEs %

3.96 3.84 4.02 4.06 4.02 3.81 3.69 4.80 7.31 6.97 Interest rate, large firms %

2.95 2.89 3.05 2.98 3.54 3.20 3.16 3.86 6.51 6.39 Interest rate spread Percentage points

1.02 0.95 0.97 1.08 0.48 0.61 0.53 0.94 0.80 0.58 Non-bank finance Venture and growth capital USD billion 1.76 2.08 1.12 2.10 2.41 1.51 2.19 3.05 3.32 4.30 4.50 5.86 7.86 10.40 25.60 15.74 6.90 9.60 Venture and growth capital (growth rate) %, Year-on-year growth rate

18.02 -46.05 87.50 14.76 -37.34 45.03 39.27 8.89 29.63 4.65 30.19 34.00 32.29 146.23 -38.52 -56.16 39.10 Other indicators Payment delays, B2B Number of days 57.20 53.00 28.00 28.00 Bankruptcies, SMEs Number

Other indicators Payment delays, B2B Number of days 57.20 53.00 28.00 28.00 Bankruptcies, SMEs Number

2 061 2 834 3 737 5 000 5 610 5 322 5 175 7 900

Bankruptcies, SMEs (growth rate) %, Year-on-year growth rate

37.51 31.86 33.80 12.20 -5.13 -2.76 52.66

Source: See Table 10. 3

FINANCING SMES AND ENTREPRENEURS 2026: ISRAEL © OECD 2026

Macroeconomic and financing conditions Israel’s economy is expected to rebound strongly following the shocks of 2023 and 2024. Real GDP growth is projected at approximately 3. 3% 1in 2025 and an even stronger 4.9% in 2026 . Inflation, elevated by supply constraints and a tight labour market, is forecast to reach around 3.2% in 2025 and then decline to approximately 2.9% in 2026 as fiscal consolidation and easing supply bottlenecks moderate pressures. These projections rely on the assumption that geopolitical tensions across th e region ease during 2025 and 2026. If such easing occurs, exports are expected to accelerate and private cons umption should continue to recover. Despite heightened geopolitical tensions, Israel continued to benefit from stro ng foreign currency inflows, mainly from the high-tech sector and defence exports. After an initial deprec iation following the outbreak of the war, the shekel recovered and strengthened. This helped ease inflationar y pressures by lowering the cost of imported goods and inputs. SMEs in the national economy As of 2024, there were 685 thousand businesses in Israel, and 99.5% of them were SME s by definition. Independent workers (without employees) accounted for 56.6% of all businesses. Micro-ent erprises (1-4

SMEs in the national economy As of 2024, there were 685 thousand businesses in Israel, and 99.5% of them were SME s by definition. Independent workers (without employees) accounted for 56.6% of all businesses. Micro-ent erprises (1-4 employees) accounted for 30.4% of all businesses, and 11.2% of total employment; 9.9% a nd 17.6%, respectively, for small businesses (5-19 employees), and 2.6% and 20.1% for med ium-sized businesses (20-99 employees). The remaining 0.5% of Israeli companies employ more than 100 workers. 2 SME lending Bank credit is the main source of funding for SMEs, while other financing channels such as funds, private credit companies, angel investors and others play a secondary role. In Israel, most of the bank credit to SMEs is provided by the five major banking groups, with the rest being neg ligible. The Bank of Israel requires banks to classify credit data according to business types. Until 2016, eac h bank used its own definitions for business types and sizes. This was resolved in 2016, when the Bank of Israel introduced a standardised set of business size definitions. Banks In 2024, Israeli banks provided NIS 365.96 billion in credit to SMEs, an increa se of 6.04% compared to 2023 (NIS 345.1 billion). The share of SMEs in the credit granted by the bank s was 44.21% of total business credit, representing a decrease compared to the previous year, which reg istered a share of 45.89%. This is an even further decline compared to 2022, when it stood at 4 9.45%. This continues an ongoing decline that has persisted since 2017, when the share peaked at 59.88%. In total, betw een 2010 and 2024, nominal bank credit to SMEs grew by 74%. In 2009, Israeli banks were req uired to increase

ongoing decline that has persisted since 2017, when the share peaked at 59.88%. In total, betw een 2010 and 2024, nominal bank credit to SMEs grew by 74%. In 2009, Israeli banks were req uired to increase their capital targets, a goal they achieved in 2017. This process constrained their ability to extend credit during those years. In 2024, annual inflation reached 3.2%, slightly higher than in 2023, driven by a gradual recovery in demand alongside persistent supply constraints, in contrast to the global trend of moderating inflation. At the start of the year, the Bank of Israel lowered the interest rate by 0.25 percentage points, following the stabilisation of financial markets, a moderation in the inflation environment, and reduced war intens ity compared with the early stages of the conflict. For the remainder of the year, the interest rate was maintained at 4.5% to4 

FINANCING SMES AND ENTREPRENEURS 2026: ISRAEL © OECD 2026

support market stability amid the ongoing war and to guide inflation, which was elevated due to supply constraints, back towards the target range.3 Table 2. Outstanding business loans in Israel In NIS billion Indicator Unit 2022 2023 2024 Outstanding business loans, SMEs (stock) 344.6 345.1 366.0 Outstanding business loans, total (stock) 696.9 752.0 827.8

Source: Financial statement of Israeli banks Figure 1. Trends in SME and entrepreneurship finance in Israel

Credit conditions Interest rate data is not officially published but is rather extracted and ca lculated from the financial statements of the main banking groups in the country, which are required to publish a breakdown of credit distributed according to specific business group sizes. In these statements, t here is no reference to the average duration or the guarantees of the credit that was given. The estimated interest rate for small, medium, and large enterprises was obtained by dividing the i nterest

distributed according to specific business group sizes. In these statements, t here is no reference to the average duration or the guarantees of the credit that was given. The estimated interest rate for small, medium, and large enterprises was obtained by dividing the i nterest income received from businesses4 by the average credit extended to those business segments. From 2023 to 2024, interest rates for SMEs decreased, and the interest rate for large firms increased. The average interest rate for SMEs decreased from 7.31% to 7.1%, while the interest rates for large fir ms rose from 5.81% to 6.09%. Furthermore, the interest rate spread narrowed from 1.5% to 1.01 %. Demand for credit among SMEs continued to decline, falling from 54% of the SME's in 2022 to 38% in 2024, after reaching 56% in 2021 shortly after the COVID-19 period. Recent demand has also shifted more towards financing ongoing operations and addressing cash flow difficulties, rather than mainly supporting expansion.5 5

FINANCING SMES AND ENTREPRENEURS 2026: ISRAEL © OECD 2026

Table 3. Interest rates in Israel Interest rate 2022 2023 2024 Small firms (Up to 50 million NIS) 5.08% 7.58% 7.3% Medium firms (50 to 250 million NIS) 4.25% 6.83% 6.73% Total SMEs 4.8% 7.31% 7.1% Large firms (Over 250 million NIS) 3.86% 5.81% 6.09% Spread 0.94% 1.5% 1.01% Source: Financial statement of Israeli banks. Handling fees in Israel are charges for handling credit and collateral and apply to loans that are not housing-related. Each major bank has an upper limit on the fees chargeable (see Tab le 5). Until 2012,

Source: Financial statement of Israeli banks.

Handling fees in Israel are charges for handling credit and collateral and apply to loans that are not housing-related. Each major bank has an upper limit on the fees chargeable (see Tab le 5). Until 2012, loan fees applied to loans above NIS 50 000. Since 2013, the base loan amount ha s been increased to NIS 100 000, but loan fees charged on operations above that amount have remai ned largely unchanged. In general, the fees charged by each bank are different, but they have remained stabl e since 2014. All business loans below NIS 100 000 are exempt from fees by all banks. The figures in the Table 4 and Table 5 below are the maximum fees each bank can charge. In principle, however, fees are negotiated on a case-by-case basis. Table 4. Handling fees for SME loans in Israel Bank 2022 2023 2024 Bank Leumi 1.5% 1.5% 1.5% Max fee NIS 10 000 Max fee NIS 10 000 Max fee NIS 10 000 Bank Hapoalim 1% 1% 1% Max fee NIS 15 000 Max fee NIS 15 000 Max fee NIS 15 000 Bank Mizrahi 1.25% 1.25% 1.25% Max fee NIS 10 000 Max fee NIS 10 000 Max fee NIS 10 000 Bank Discount 2.5% 2.5% 2.5% Max fee NIS 30 000 Max fee NIS 30 000 Max fee NIS 30 000 First International Bank 1.7% 1.7% 1.7% Max fee NIS 10 000 Max fee NIS 10 000 Max fee NIS 10 000

Source: Fee list published by the five big banks in Israel.

Apart from those charged by Bank Mizrahi, credit allocation fees for SMEs were the lowest for all banks in

Max fee NIS 10 000 Max fee NIS 10 000 Max fee NIS 10 000

Source: Fee list published by the five big banks in Israel.

Apart from those charged by Bank Mizrahi, credit allocation fees for SMEs were the lowest for all banks in 2024 since 2008 and remained the same since 2014, thus providing a stable credit environment for SMEs. Table 5. Credit allocation fees for SME loans in Israel As a percentage Bank 2022 2023 2024 Bank Leumi 1.80 1.80 1.80 Bank Hapoalim 1.75 1.75 1.75 Bank Mizrahi 2.45 2.45 2.45 Bank Discount 2.16 2.16 2.16 First International Bank 2.10 2.10 2.10

Source: Fee list published by the five big banks in Israel.6 

FINANCING SMES AND ENTREPRENEURS 2026: ISRAEL © OECD 2026

Alternative sources of SME financing In 2024, total venture capital investment in Israel reached USD 9.6 billion, representing a 39% increase over the USD 6.9 billion raised in 2023, and a 15% rise in the number of reporte d deals to 453 . The total number of known deals for 2024 was 694, but IVC estimates that between 1 000 and 1 100 trans actions were completed during the year. Despite the backdrop of war and global macroeconomic challenges, the Israeli high-tech sector saw renewed momentum, with Q4 2024 marking the strongest qu arter of the year with 122 reported rounds, including five mega deals that accounted for 36% of the capital raised that quarter. Foreign investors continued to dominate, both in the number of investments and in total capital deployed, maintaining a pattern established since 2020. Early-stage activity benefited significantly from large transactions, most notably the USD 1 billion Safe

quarter. Foreign investors continued to dominate, both in the number of investments and in total capital deployed, maintaining a pattern established since 2020. Early-stage activity benefited significantly from large transactions, most notably the USD 1 billion Safe Superintelligence A round, resulting in an 84% yearon-year increase in capital and a 14% rise in deal numbers for seed and A rounds combined. In total, there were 21 seed rounds exceeding USD 10 million, amounting to USD 361 million, which is almost identical to 2023 levels. Pre-seed deals also rose, with 144 transactions, an increase of 25% compared to 2023. Mid to late-stage investments also rebounded after two years of decline, with gr owth-stage companies benefiting from renewed investor appetite. Deals over USD 100 million accounted for 48% of total capital raised, with six transactions exceeding USD 200 million and totalling US D 2.97 billion. Cybersecurity remained the leading sector, attracting 38% of all 2024 funding, boosted by large rounds for Wiz and Cyera. Generative AI also drew attention due to the Safe Superintelligence investment. Israeli high-tech exit activity in 2024 recorded a substantial rebound, with total capital proceeds of USD 20.5 billion, representing a 64% increase from 2023, although the number of exi ts remained relatively modest. Mergers and acquisitions dominated, with the acquisition of Own Data C ompany Ltd. by Salesforce for USD 1.9 billion being the largest deal of the year. The top 22 M&A tran sactions valued at over USD 300 million each accounted for about 80% of all M&A proceeds. First exits were pa rticularly strong, contributing 75% of total exit value and nearly doubling compared to 2023. Table 6. Total venture capital investments in Israel Indicator Unit 2019 2020 2021 2022 2023 2024 Total venture capital investment USD million 7 799 10 393 25 889 15 747 6 901 9 604 Total VC investment,

Table 6. Total venture capital investments in Israel Indicator Unit 2019 2020 2021 2022 2023 2024 Total venture capital investment USD million 7 799 10 393 25 889 15 747 6 901 9 604 Total VC investment, growth rate % 33 33 149 -39 -56 39

Source: Information courtesy of IVC Research Centre, Home (ivc-online.com) 7

FINANCING SMES AND ENTREPRENEURS 2026: ISRAEL © OECD 2026

Figure 2. High-tech capital raising in Israel

Source: Summary of Israeli High-Tech Company Capital Raising 2020, IVC Research Centre and ZAG S&W.

Other indicators A decline in non-performing loans6 as a share of total credit volume can be seen across all company sizes, with the most significant improvement recorded among large companies, dropping from 0. 99 in 2023 to just 0.33 in 2024. This notable reduction suggests a marked improvement in credit quali ty and repayment capacity within the large-company segment, potentially reflecting stronger fina ncial performance and improved risk management. Table 7. Non-performing loans in SMEs vs. large businesses in Israel As a percentage Weighted arithmetic average of non-performing loans 2022 2023 2024 Small businesses (Up to NIS 50 million) 1.10 1.46 1.31 Medium businesses (NIS 50 to 250 million) 0.89 1.38 0.97 Large businesses (Over NIS 250 million) 0.64 0.99 0.33 All businesses 0.83 1.19 0.71

Source: Financial statements of Israeli banks.

Payment delays Since 2017, Israel has a law for ethical (late) payment for suppliers. The law stipul ates that governmental entities and public entities should pay their suppliers within 30 days (counting fr om the end of the month).

Source: Financial statements of Israeli banks.

Payment delays Since 2017, Israel has a law for ethical (late) payment for suppliers. The law stipul ates that governmental entities and public entities should pay their suppliers within 30 days (counting fr om the end of the month). Local authorities should pay their suppliers within 45 days (counting from the end of the month), and business sector entities should pay their suppliers within 45 days (counting from the end of the month).8 

FINANCING SMES AND ENTREPRENEURS 2026: ISRAEL © OECD 2026

The SMBA survey shows a consistent decline in late payment rates over recent year s. In 2019, late payments were recorded in 51% of G2B transactions, 61% of transactions with local authorities, and 17% of B2B transactions. By 2022, these rates had dropped to 33% for G2B, 36% for local authorities, and 6% for B2B. In the 2024 survey, late payments were reported in 25% of G2B transactions and 30% of transactions with local authorities, while data for B2B transactions was not collected. Bankruptcies Since 2017 the Official Receiver's report has not published figures for bankru ptcy orders. "Receiving orders” are a demand from the court to officially close a bankrupt company. Over the last decade they have fluctuated, peaking at 19 906 in 2017, falling to 16 373 in 2019, and then rising again to 17 431 in

2020. Since then, they have declined overall, reaching 13 040 in 2024, which represents a slight decrease of about 1% compared to 2014. Data for dissolution requests show a gradual ris e until 2017, followed by a 32% jump in 2018 to 1 207. The numbers then remained relatively stable until 2021, ranging between 1

of about 1% compared to 2014. Data for dissolution requests show a gradual ris e until 2017, followed by a 32% jump in 2018 to 1 207. The numbers then remained relatively stable until 2021, ranging between 1 179 and 1 328, before increasing sharply to 1,682 in 2022. After falling to 1 311 in 2023, dissolution requests rose again to 1 632 in 2024. (see Table 8). Table 8. Bankruptcies in Israel Total number, all businesses Indicator 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Receiving orders 13 228 14 756 16 138 19 906 19 538 16 373 17 431 14 406 16 252 14 729 13 040 Bankruptcy orders 5 322 5 175 7 900 Dissolution requests 795 879 887 914 1 207 1 179 1 200 1 328 1682 1 311 1 632 Dissolution orders 520 551 602 607 739 872 900 873 1 138 1 037 1 504

Source: Ministry of Justice, the Official Receiver Report, https://www.gov.il/BlobFolder/reports/insolvency-and-financial-rehabilitationprocedures-report-2024/he/report-2024.pdf Government policy response Government loan guarantees for SMEs In 2023-24, SME and entrepreneurship policy in Israel continued to rely on a combination of long-standing business support instruments and temporary measures introduced in response to the 'Swords of Iron' War.

The Ministry of Economy and Industry, through the Small and Medium Business Agency, remained responsible for broad SME support, while the Israel Innovation Authority continued to focus on technologybased startups and innovative SMEs. The State Guarantee Loan Fund remained the main public instrument for facilitati ng SME access to debt

The Ministry of Economy and Industry, through the Small and Medium Business Agency, remained responsible for broad SME support, while the Israel Innovation Authority continued to focus on technologybased startups and innovative SMEs. The State Guarantee Loan Fund remained the main public instrument for facilitati ng SME access to debt finance. Operated by the Accountant General at the Ministry of Finance in co-operation with the Small and Medium Business Agency, the fund supports working capital, investment and busin ess establishment needs. It serves businesses with annual revenue of up to NIS 100 million a nd includes dedicated tracks for new businesses, exporters, industrial investment, agriculture, sustainable energy and short -term working capital. Following the outbreak of the war in October 2023, the government expanded liquidity support through special war-related tracks under the State Guarantee Loan Fund. Eligibility was extended to businesses with annual revenue of up to NIS 1 billion. The framework enabled up to NIS 10 bill ion in loans, including up to NIS 8 billion for micro, small and medium-sized businesses and up to NIS 2 billion for large 9

FINANCING SMES AND ENTREPRENEURS 2026: ISRAEL © OECD 2026

businesses. For SMEs, the state guarantee covered 85% of the loan amount, and repayment could be deferred for up to 12 months. Other schemes Grant-based compensation schemes were also introduced to support businesses affected by the war. The Property Tax Compensation Fund provided nationwide compensation to businesses with annual revenue of up to NIS 400 million that experienced the required decline in revenue due to the war. Additional areabased mechanisms applied to localities and sectors more directly affected, inc luding the red track for border communities and green track arrangements for eligible localities and sec tors under emergency regulations. The Bank of Israel and the banking system introduced complementary measures to ease short-term financial pressure on businesses. These included a loan payment deferral framework for eligible households and businesses, including business credit of up to NIS 2 milli on for businesses with annual

regulations. The Bank of Israel and the banking system introduced complementary measures to ease short-term financial pressure on businesses. These included a loan payment deferral framework for eligible households and businesses, including business credit of up to NIS 2 milli on for businesses with annual revenue of up to NIS 25 million. The Bank of Israel also launched a targeted mo netary loan programme under which banks received lower-cost funding against loans extended to sma ll and micro businesses whose revenues had declined by at least 25% due to the war, subject to limits on the interest rate charged to borrowers. For technology-based SMEs and startups, the Israel Innovation Authority expanded s upport in response to tighter funding conditions and wartime uncertainty. In October 2023, the Fast Tr ack programme was expanded to NIS 400 million to provide rapid funding to startups facing short runways and difficulties raising private capital. In 2024, the government approved a broader high-tech stimulus package, includi ng the Startup Fund for early-stage deep-tech companies and Yozma Fund 2.0, designed to mobil ise greater institutional investment into Israeli venture capital funds. Table 9. Government loan guarantees in Israel In NIS million Indicator 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Government guaranteed loans, SMEs 757 1,028 890 1,057 1,951 2,112 2,340 1,838 1,618 1,618 1,887 21,951 2,634 918 4,452 4,037 Government guaranteed for the portfolio of SME loans in the banks 121 164 116 116 215 232 257 184 144 166 22 4,170 365 119 504 475

Note: estimate. Source: Accountant general, Israeli Ministry of Finance.10 

for the portfolio of SME loans in the banks 121 164 116 116 215 232 257 184 144 166 22 4,170 365 119 504 475

Note: estimate. Source: Accountant general, Israeli Ministry of Finance.10 

FINANCING SMES AND ENTREPRENEURS 2026: ISRAEL © OECD 2026

Figure 3. Trends in SME and entrepreneurship finance in Israel 11

FINANCING SMES AND ENTREPRENEURS 2026: ISRAEL © OECD 2026

Table 10. Sources and definitions of Israel’s Scoreboard Indicator Definition Source Debt Outstanding business loans, SMEs Business loan amount outstanding for SMEs Financial statement of Israeli banks + Bank of Israel Outstanding business loans, total Total business loan amount outstanding for all firms Financial statement of Israeli banks Government loan guarantees, SMEs Government guaranteed for the portfolio of SMEs loans in the banks (estimate) Accountant General, Israeli ministry of finance Government guaranteed loans, SMEs Bank loan given with a governmental guarantee Accountant General, Israeli ministry of finance Non-performing loans, total Percentage rate for damaged debts in all firms Financial statement of Israeli banks Non-performing loans, SMEs Percentage rate for damaged debts in SME Financial statement of Israeli banks Interest rate, SMEs Margin credit activity, received by SMEs, divided by the credit given to that sector Financial statement of Israeli banks + Bank of Israel Interest rate, all firms Margin credit activity, received by all Businesses, divided by the credit given to all Businesses Financial statement of Israeli banks + Bank of Israel Non-bank finance Venture and growth capital Venture capital investments in Israeli SMEs Israel Venture Capital (IVC) 2024 Report Other Payment delays, B2B Average number of delay days from agreed payment day, B2B, only for businesses that reported about delay days. businesses survey by the SMBA Bankruptcies, SMEs Number of bankruptcies orders issued by the Official

Other Payment delays, B2B Average number of delay days from agreed payment day, B2B, only for businesses that reported about delay days. businesses survey by the SMBA Bankruptcies, SMEs Number of bankruptcies orders issued by the Official Receiver Ministry of Justice, the Official Receiver report for 2023

References Financial statement of Israeli banks and credit cards companies: https://www.boi.org.il/roles/supervisionregulation/analizestat/ Accountant general, Israeli ministry of finance: https://mof.gov.il/AG http://mof.gov.il/AG/FinancingAndCredit/StateGuarantees/Documents/BusinessLoansFound.pdf Credit allocation fees in Israel available under: https://www.leumi.co.il/home01/commissions_and_fees/9046/ https://www.bankhapoalim.co.il/wps/portal/PoalimPrivate/taarifone https://www.mizrahi-tefahot.co.il/he/Bank/Pages/interest-list.aspx https://www.discountbank.co.il/DB/private/general-information/price-list-and-hiking-fees https://online.fibi.co.il/wps/portal/FibiMenu/Marketing/AnNote/AnInformation/AnCommissionsRate Venture capital investments in Israel: IVC Research Centre - Home (ivc-online.com) Summary of Israeli High-Tech Company Capital Raising 2024, IVC Research Centre Bankruptcies DATA: Ministry of Justice, the Official Receiver report https://www.gov.il/BlobFolder/reports/new_2023-report/he/REPORT2_2023.pdf

SMEs in the national economy: https://www.sba.org.il/hb/PolicyAndInformation/Researches/Pages/sr15.aspx12 

FINANCING SMES AND ENTREPRENEURS 2026: ISRAEL © OECD 2026

Outstanding Payment delays, B2B: SMBA, SME annual state, 2021 https://www.sba.org.il/hb/AidPrograms/Pages/pr10.aspx

FINANCING SMES AND ENTREPRENEURS 2026: ISRAEL © OECD 2026

Outstanding Payment delays, B2B: SMBA, SME annual state, 2021 https://www.sba.org.il/hb/AidPrograms/Pages/pr10.aspx https://www.boi.org.il/en/bank-of-israel/iron-swords/boi-outline-banks2024/ https://innovationisrael.org.il/en/calls_for_proposal/yozma-2-0-fund/ Notes

1 BOI updated forecast 2 There are also other definitions of sizes of SMEs by turnover and sales, but mostly both definitions are compatible. 3 https://www.boi.org.il/media/upvdwfe5/2024-full-r.pdf 4 Interest income from external sources 5 https://www.sba.org.il/hb/PolicyAndInformation/Researches/Documents/mimun%20assakim%2020192025.pdf 6 Non-performing loans are damaged debts which had been defined by the Bank of Israel as debts expected not being able to collect by the bank.

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