Grants for immigrant entrepreneurs: what is realistic to get in 2025–2026

One of the most popular topics at Yazam Ole meetings is grants. Many new immigrants come with the conviction that the state is ready to distribute money for business. The reality is more complicated, but also more interesting: support programmes exist, they work, but they require an understanding of who and under what conditions they are available. Let's analyze the system honestly.

Important distinction: grants, subsidies and concessional loans

There is no single “olim entrepreneur grant” in Israel. State support for small and medium-sized businesses is implemented through several mechanisms: non-repayable grants, subsidized consultations and training, loans on favourable terms through government funds, and tax breaks (about them in a separate article). Each mechanism has its own requirements, limits and deadlines.

Maof business-support centres

Maof is the nationwide business-support network operated by the Small and Medium Business Agency. It offers subsidised advice, mentoring, courses, and guidance on business planning and access to finance.

Maof is not itself a cash grant for opening a business. Its value lies in subsidised access to professional advisers and practical guidance on currently available funding routes. For a new immigrant unfamiliar with the system, it can be an important first point of contact.

Israel Innovation Authority (Rashut HaHidashnut)

The Israel Innovation Authority (רשות החדשנות, formerly the Office of the Chief Scientist) funds technology startups through competitive R&D grants. This is one of the few mechanisms that provide substantial non-repayable funding - as a rule, 20-50% of the project budget is covered by a grant.

Is the Israel Innovation Authority the right fit for the typical Yazam Ole member? Partially. Requirements: technological innovation or product development with intellectual property, registered Israeli company (amuta or Ba'am) - not a sole proprietor. If you are launching a service or retail business, this path is not for you. If you have a technological product, review the current programmes at innovationisrael.org.il.

Ministry of Aliyah and Integration

The Ministry of Aliyah and Integration administers the “absorption basket” (sal klita) - this is a monthly payment to new immigrants for the adaptation period, not a business grant. At the same time, the ministry periodically launches targeted support programmes for olim in the field of employment and entrepreneurship - they change every year depending on the budget and priorities. Check the current information on gov.il.

Regional and municipal programmes

A number of municipalities and regional councils have their own programmes to support local businesses - subsidized rent in business parks, loans on favourable terms through municipal funds, employment grants. Conditions vary significantly between local authorities and regions. Check with the economic department of your municipality.

Jewish Agency and Overseas Foundations

Sokhnut (the Jewish Agency) does not directly finance businesses, but it organizes a number of entrepreneurship programmes for new immigrants - often in the format of hackathons, competitions with prize funds and access to mentors. Follow the announcements at the Jewish Agency for Israel (jewishagency.org).

How to really get a grant: a practical algorithm

1. Decide on the type of business and legal form - different programmes are available only to individual entrepreneurs or only to companies.
2. Contact the relevant Maof centre: an initial consultation can help you map the support routes that fit your business.
3. Check out the Israel Innovation Authority website if you have a unique technology product.
4. Explore the website of your municipality - section “business support” (תמיכה בעסקים).
5. Prepare a business plan—most programmes require one in some form.
6. At Yazam Ole, we help participants navigate the grant system and prepare clear, well-structured applications.

Typical submission mistakes

• Applying without understanding the eligibility criteria: Understand the terms and conditions of the programme before wasting time on the paperwork.
• Weak business plan: Applications are often rejected because of vague goals and unrealistic financial projections.
• An unsuitable legal structure: if the grant is for companies, and you are an individual entrepreneur, they will refuse.
• Applying for a grant instead of a loan: sometimes a preferential loan is easier and faster to get, and the overall cost of borrowing may be reasonable.
• Waiting for “quick money”: competitive grants are processed for months.