Almost a year on from the October 7 attacks, tens of thousands of Israel's small businesses continue to struggle with the aftermath of that fateful day.
According to the business information company CofadceBDI, Israel could see as many as 60,000 businesses shutting their doors by the end of the year. Between high interest rates, inflation, a shortage of manpower due to many fulfilling their military reserve obligations and supply chain interruptions, some 46,000 businesses have already closed shop since October 7.
These businesses are the glue that keeps the Israeli economy together employing some half a million people, many of whom have been evacuated from their homes because of the war. Thus, it's not uncommon to see many storefronts in Israel shuttered and once bustling communities transformed into ghost towns.
That's where the peer-to-peer lending platform SparkIL has stepped in to provide a lifeline to the businesses who need it the most, by enabling individuals across the world to directly support the small business of their choice in Israel. Since October 7, SparkIL has rallied more than 2,000 microlenders to contribute a total of about $5.5 million to over 300 Israeli small businesses.
SparkIL was established in 2022 in partnership with The Jewish Agency for Israel and The Ogen Group. For a loan as small as $25, lenders in America and worldwide who are passionate about Israel have a tangible, on the ground way to help the Israeli people at their darkest hour. The minimum investment for Israeli lenders on the platform, meanwhile, is a loan of NIS 50.
"For nearly a year, countless business owners in Israel have had to accept the new normal of not only halting their operations but being evacuated from their homes and in need to reinvent themselves," Na'ama Ore, CEO of SparkIL, said. "That is why we have decided to harness the passion and generosity of both Jews around the world and Israelis who are eager to help, empowering them to become social lenders through our platform. Each loan represents the importance of mutual responsibility as an Israeli society and as a Jewish people to support each other."
At an event in New York on Sept. 15, Americans had the opportunity to meet the owners of several Israeli small businesses that have received assistance from SparkIL as they navigate the deep disruption of their operations during the ongoing war. The business owners in attendance included those from Oryosss, a cafe chain with two locations in the Gaza Envelope that has experienced significant physical, economic, and moral challenges due to the owner's service in the IDF reserves; Hoshen Judaica, which provides opportunities for artists with special needs; B-Green, a beekeeping business that before the war had already seen broader challenges given that the honey bee is disappearing at an alarming rate from the world; and Hooga, a business specializes in creating engaging and aesthetically pleasing content that fosters connection among families, friends, and communities.
"The cafe was open for a month and a half, and then came October 7, and my two businesses were shut down," said Or Shukron, owner of Oryosss. "For me it was a total financial crash. It was the end of the world. Thanks to SparkIL, I really managed to preserve this place and reopen it. At the beginning of the war, I was certain that I was going to close both of my coffee shops despite all the investment and despite all the goodwill to take care of my community. Thanks to the SparkIL loan, I was able to support myself financially and reopen my businesses."
"When the founders of SparkIL launched the platform in 2022, we rooted the initiative in the global Jewish people's sense of mutual responsibility and aspired to secure a vibrant Jewish future for generations to come," said Amira Ahronoviz, CEO and Director General at The Jewish Agency as well as the Chair of the Board of SparkIL. "Today, it is clearer than ever that SparkIL is powerfully advancing these values and objectives — by forging connections between Jews around the world who are yearning for ways to directly support the Israeli people during their moment of greatest need, and Israel's small business owners who are facing immense adversity and working tirelessly to make ends meet during the war. In New York, to witness those same business owners give an American audience a living, breathing picture of their experience was nothing short of magical."
Sagi Balasha, CEO of The Ogen Group, said, "It was very exciting to see at the event how SparkIL has managed to make it this far. From the Israeli entrepreneurs who we brought to New York, to donors, to the potential lenders who were in attendance, the wide array of activity and enthusiasm among the crowd demonstrates the growing number of individuals across world Jewry who are becoming active daily partners in this initiative to support Israel's small business owners — at a time when they need us more than ever."
In the North of Israel, Moran Stark, owner of Shakdia Ltd, a boutique tourism company in Holta, is deeply grateful for the contributions she's received from Jews around the world via SparkIL.
The divorced mother of two is a member of the Galilee Regional Council in a town that has yet to be evacuated even though it's a mere 10 kilometers from the Lebanese border. Stark has hosted delegations from all over the world and is the CEO of a company that would rake in some NIS 6 million a year. Then, like a punch in the gut, the COVID-19 virus came without warning, and it took her two years to recover until foreign tourism came back to Israel.
Once Stark began to regain her footing, the war came with a vengeance. This time, Stark didn't wait patiently for the situation to resolve itself.
"I decided to reinvent myself," Stark said. "After COVID-19, I understood there's no future in tourism right now so I'm on to the next venture. SparkIL has given me the breathing room I need to be able to start this new chapter in my career without stressing about every shekel."
Aviva and Yoel Auerbach, who own a pizza restaurant in the Upper Galilee, were evacuated on October 7 due to their proximity to the northern border.
"We turned to SparkIL — which, in our view, is a philanthropic-social venture that saves families," Yoel Auerbach said. "At that point in time, the loan was like oxygen that enabled us to breathe and survive, until the government started to also help us with our situation."
Earlier this year, The Ogen Group shared data demonstrating that the need for microloans is greater than ever indicating that in June there was a 176% jump – almost threefold – in the number of applications submitted by families and individuals for interest-free loans compared to the same month last year. That translates to some 1,015 new applications, compared to 365 in the previous June.
However, none of this would be possible without the support of those in world Jewry who felt paralyzed after October 7 and wanted to find practical and meaningful ways to help those impacted by the war.
Robin and Richard Galpern of Richmond, Va., were inspired by the story of Oryosss, a cafe chain with two locations in the Gaza Envelope. Since the start of the war, the business has experienced significant physical, economic, and moral challenges due to the owner's service in the IDF reserves.
"During a visit to Oryoss, we heard about the SparkIL model and thought it kept in line with Jewish values and was an amazing opportunity to prove that we support Israel. Giving to these businesses doesn't require a lot of effort or money," Richard Galpern said.
After investing a small amount over the phone while in Israel, the Galperns decided to go bigger for their daughter Sabrina's bat mitzvah and pre-purchased 100 gift cards of $25 each for their daughter to distribute on her big day.
"We're a philanthropic family and we live that wholeheartedly. This is a chance to expose her friends to the act of giving even if they may not have the means to do so right now. It taps into the philanthropy of the next generation," he explained.
In addition to lifting up those who believe in working hard for what they have, Richard said his family "fell in love with the fact that SparkIL gets someone interested in Israel. You form a connection with the land, the people and the businesses whether they're Jewish or not. This is an amazing way to humanize the philanthropic process."
