Emergency Credit Line Program “SOMOD”

In 2014, The Palestinian Fund for Employment and Social Protection for workers in cooperation with the Ministry of Finance and funded by the Italian Development Cooperation started to implement the First phase of the (START UP Palestine) program which is a long term loan of 20 Million Euros to support the initiatives of the socially and economically marginalized groups such as women, new, young graduated and small farmers. The program mainly focuses on enhancing the opportunities of accessing and obtaining credit or loans for the MSMEs withing the Palestinian Law through the credit line that was activated in February, 2016 with a total of 14 Million Euros provided as loans through MFIs licensed and registered to operate in Palestine.

The project was established within the (START UP Palestine) program with a value of 4 Million USD Portfolio in cooperation with the PFESP and the selected MFI Palestine for credit and development “FATEN” and this is the first phase of the program which aims to enhance and provide the necessary financial support to a number of Micro and Small enterprises that were directly or indirectly affected by the spread of the global epidemic Corona (COVID-19) for the sectors that the program targets to complement the meaningful actions/procedures at containing the crisis of negative repercussions of the Corona virus on the national economy and assisting businesses that were affected in order to cover its financing needs to enable them to maintain their workflow and continue their activities and enable them to remain and resume their activities at normal levels.


Project Objectives:

  • Enhancing the resilience of the Palestinian citizen on his land especially in light of the difficult circumstances in the Palestinian territories
  • Contributing in the recovery and sustainability of the MSMEs performance and operation
  • Enable and empower the affected businesses from Corona Virus crisis including the MSMEs to obtain the necessary financial services
  • Provide technical assistance to the targeted businesses


Loans Advantages:

  • The sub loan ceiling is up to 20,000 USD to each business.
  • Competitive 3% interest rate to the affected businesses.
  • Grace period is 6 months based on the type and cash flow of the financed business.
  • Project payments will be either on monthly, quarterly or seasonal basis, or to be determined according to the financed business cash flow.
  • Credit facilities are granted to both male and female.
  • No commissions fee.


Sub-Loan conditions

  • Existing businesses who are affected directly or not directly by the corona pandemic crisis
  • The business should be existed before the corona virus crisis
  • The number of current employees in the business from 2-9 employee
  • Provide the loan to finance the income generating activities including working capital or/and covering the operational expenses of the business
  • Formal business registered officially in the competent departments
  • The results and cashflow of the business should be credit-acceptable in the end of each year
  • Adhere to the determined criteria and provide the guarantees required by the selected MFI to obtain the loan.