Loan Guarantees

Portland’s work saw a Palestinian Loan Guarantee Facility launched with $230m, providing loans from $10,000 to $500,000, backed with a 70% guarantee, achieved alongside The Aspen Institute, the US Overseas Private Investment Corporation (OPIC, now the DFC), and the Palestine Investment Fund. The project enabled banks to extend credit and affordable finance provision for Palestinian small and medium enterprises (SMEs). Designed as a temporary 10 year intervention to address credit system bottlenecks and stimulate lending, approximately 100 loans were approved totalling $147m. The project included a technical assistance programme to help banks market financial products more successfully. The fund was managed by the Middle East Investment Initiative (MEII).

Portland similarly partnered with Koret Israel Economic Development Funds enabling SMEs in the Negev and Galilee regions to apply for loans from $12,500 to $300,000. The project secured a $10m second-loss bank guarantee to leverage nearly $150m of bank financing over 7 years, granting some 1,416 loans (760 in the Galilee and 656 in the Negev) with a value of around $117million. 

US$ 0 m
in loans for small and medium sized enterprises