Recently, more and more Israeli companies have been contacting me with the same scenario: “We’ve been selling to the Israeli military for years, but today there is a critical shortage of funds.  Therefore, the Israeli DOD wants to purchase my products using FMF funds.  Can I establish manufacturing in Virginia? 

The short answer is “yes”.  And the long answer is “yes” as well. 

The FMF funds are the $2.0 billion in military aid (Foreign Military Funding) that Israel receives each year.  This money must be spent in the US to purchase US products.  An Israeli company can fulfill FMF orders either by establishing their own manufacturing facility in the US and/or by partnering with another American company.  The Israeli company setting up in Virginia might also be eligible for various financial incentives, such as loans, workforce training grants, tax credits etc. 

The Virginia Israel Advisory Board (VIAB) can help guide an Israeli company through the maze of getting up and running.   Even if it’s a relatively small order totaling a few $million, we can assist you.  And once you’re up and running, you can approach the US DOD.  A bit of trivia you many not know: Virginia companies receive more Federal Contracts than any other State with the exception of California… and Virginia is closing in on them as well. 
 
I am visiting Israel in November and will be available for consultation from November 9 – 24.  The best way to contact me is through email: robbins@viab.org or via telephone: 972-56-300376.  I look forward to hearing from you.