Israeli nonprofit expands interest-free loan programme to aid war-stricken reservists

Shira Silber and Tomer Peled speaking at the Ogen Conference 2024 Credit: Ronen Topelberg

The financial burden on Israel’s reservists during the ongoing war has reached unprecedented levels. Many have been called up for extended periods, leaving their jobs and businesses behind while serving on the front lines. Families dependent on reservists as their primary breadwinners have been left struggling to cover mortgage payments, utility bills, and daily expenses. The economic strain has compounded the emotional toll of worrying about loved ones in harm’s way, leaving spouses and caregivers to navigate logistical and financial challenges with diminished resources.

These hardships are particularly acute for reservists who are self-employed or work in small businesses, where their prolonged absence often disrupts operations and threatens livelihoods. For many, the pressures of service to their country are compounded by the knowledge that their financial stability—and that of their families—hangs in the balance. Addressing this urgent need requires innovative financial solutions that go beyond traditional forms of aid.

In this context, Israeli nonprofit Ogen has expanded its Yuval Fund to provide interest-free loans for reservists and their families. The Yuval Fund, established in memory of fallen soldier Yuval Silber, offers loans of up to 40,000 shekels (approximately $8,200 USD) to reservists who have served at least 30 days since the conflict began. These loans are designed to alleviate immediate financial pressures and are structured for accessibility, requiring no guarantors and offering a five-year repayment period. By removing typical barriers to borrowing, the fund ensures that reservists can access the support they need without added stress.

The fund emerged from tragedy. Yuval Silber, a young reservist, was killed in action in November 2023. Deeply affected by his death, the Peled and Scharf families, including Efrat Peled, CEO of the Arison family’s investment arm, initially established the fund with a donation of 500,000 shekels (approximately $138,000 USD). Since its inception, the fund has expanded rapidly, providing over $4 million in interest-free loans to reservists, helping thousands of families manage their finances during an immensely challenging time.

The Yuval Fund is not only a lifeline for those in need but also a model of sustainable philanthropy. By operating on an interest-free loan model, it creates a revolving pool of funds. As reservists repay their loans, the resources are reinvested into new loans, allowing the fund to provide ongoing support to successive waves of reservists. Ogen’s proven approach to interest-free lending, with a loan default rate of just 0.7%, underscores the viability of this model in addressing urgent social challenges.

Ogen’s efforts to expand the Yuval Fund come at a critical time. Since the October 7 attacks, the organization has processed a 250% increase in loan applications from reservists. In total, Ogen has disbursed $78 million across various initiatives, with the Yuval Fund playing a central role in addressing the financial hardships faced by those called to serve. The organization’s mission of advancing financial inclusion and well-being for underserved communities is evident in its commitment to supporting reservists and their families during this time of crisis.

The impact of the fund extends beyond financial relief. For the families and friends of Yuval Silber, it is also a meaningful way to honor his memory. At a recent Ogen-hosted conference in Tel Aviv, Yuval’s sister, Shira, spoke about the fund’s significance: “Yuval was a true hero, and we wanted a memorial that reflected his vibrant personality and values. Partnering with Ogen allowed us to create something enduring, something that transforms grief into hope for others.” Yuval’s close friend, Tomer Peled, emphasized the fund’s sustainability: “The goal is for the loans to remain sustainable for years to come, as current reservists repay the funds, allowing them to be passed on to the next generation of those who give so much.”

The Yuval Fund demonstrates how innovative financial tools, rooted in empathy and sustainability, can transform challenges into opportunities. It exemplifies a model of philanthropy that goes beyond charity to empower individuals and communities, offering not just relief but resilience in the face of adversity. For Ogen, and for the families who have contributed to this initiative, the fund is a testament to the enduring power of collective action to create meaningful change.

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