Jun 7, 2014

Greater Miami Jewish Federation Investing in Businesses in Israel's Negev Region

“The future of Israel lies in the Negev.”
- David Ben Gurion, Israel’s Founding Prime Minister

At 4,700 square miles, the Negev Desert covers nearly 60 percent of Israel’s territory, yet is home to just eight percent of its population. Communities in this southern region have consistently lacked sufficient resources for residents, resulting in an ongoing exodus to amenities-rich, highly populated cities. In an effort to reduce the “brain drain” and to make the Negev more attractive to new residents and businesses, the Greater Miami Jewish Federation, the Israeli government, The Jewish Agency for Israel and other nongovernmental organizations have been working in recent years to inspire and support development of cities and towns in the region.

One such initiative is the Ness Negev Business Loan Fund, which works to expand commerce and develop employment opportunities by loaning capital to new and existing businesses in the region and existing businesses. During the past few years, the Greater Miami Jewish Federation has invested a total of $1.2 million in Israel’s Negev region through the fund.

The Ness Negev Business Loan Fund was founded by the Jewish Federation of Greater Metrowest in New Jersey and was named in memory of philanthropists Mack, Sanford and Anne Ness. The Greater Miami Jewish Federation has since supported the fund, which is managed by The Jewish Agency for Israel. A public board operates the fund, processing loan applications, reviewing business plans and providing feedback.

For the Greater Miami Jewish Federation, the decision to participate in the Ness Fund was a natural extension of the Miami Jewish community’s long-standing commitment to the development of the Negev. Among Federation’s Negev-related ventures is a successful long-time partnership with the Israeli town of Yerucham, a relationship that was formed in to support economic development, foster relationships between the Jewish community in Miami and Yerucham, foster relationships between the Jewish community in Miami and Yerucham, and improve the quality of life in the Negev community.

“The Negev region needs new businesses to promote rapid growth, create economic opportunity and prevent residents from needing government social services,” said Hedy Whitebook, Chair of the Greater Miami Jewish Federation’s Israel and Overseas Committee. “By investing in these loan funds, we help people better their lives. And as they repay their loans, we can invest in even more businesses. It’s a win-win situation for everyone.”

The Ness Fund has distributed 334 loans, totaling $1.7 million during the past eight years. Each loan ranges between 100,000 to 300,000 shekels (approximately $25,000 to $75,000 in U.S. dollars), depending on the scope of the prospective business operation. The fund has an excellent record of loan repayment.

Success Stories

Brothers Roi and Kobi Kastenbaum envisioned a swimming pool manufacturing business in their hometown of Be’er Sheva. They began by building pools for friends and neighbors in their parents’ backyard. Spurred by initial success, the Kastenbaum brothers applied to the Ness Negev Business Loan Fund for expansion capital to take their business to the next level.

In early 2011, the Kastenbaums were able to open Avi Yam Spa Pools and Services, a manufacturing plant based in Be’er Sheva. Today, their company is the only producer of fiberglass pools in Israel and sells an average of one pool per day.

Moshe Zohar was born and raised in the Negev town of Ofakim. After completing his military service and getting married, he returned to his hometown and worked for a local business. After 15 years, he rose to a senior management position, but yearned to open his own establishment. With the support of the Ness Fund, he was able to open an Ofakim branch of The Stock, a franchise store selling products for the office, home and garden.

Today, Moshe’s Zohar’s store employs four members of his family, has exceeded its business forecast and is planning to expand to meet increasing customer demand. Zohar credits the Ness Fund for supporting his dream and providing the business planning assistance that launched his business.

Sixty years ago, David Ben Gurion espoused the importance of developing the Negev region and building strong, self-reliant communities.

“It is in the Negev that the people of Israel will be tested,” the founding Prime Minister said. “For only with a united effort of a volunteering people and a planning and implementing state will we accomplish the great mission of populating the wilderness and bringing it to flourish.”

Today, Ben Gurion’s vision is being fulfilled through collaborations between programs like the Ness Negev Business Loan Fund and determined, aspiring Israeli entrepreneurs.

For more information about the Ness Negev Business Loan Fund and other efforts by Federation’s Israel and Overseas Department, please contact Dahlia Bendavid at [email protected] or 786.866.8445.