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The effect crisis of COVID-19 in economic sector brings an extremely worries for the middle to bottom economic class. The effort of small and medium size enterprises as a backbone of national economic suffered a blow for economic setbacks. This paper aims to formulate the innovation of business model based on community development as an effort to countermeasure an effect of society economic crisis in real sector with formulating of business model innovation based on productive zakat to restore the economy of SMEs affected by the pandemic. This research is qualitative research with descriptive approach. The data used are primer and secondary data and the data collection techniques that carried out by researcher are an interviews with beneficiaries as leaders in the business incubation projects that have been carried out, while secondary data from literature review and business report documents of mustahik. The model of business incubator based on zakat productive has enarmous potential in restoring the economics of micro-small and medium sized entreprises (SMEs) that have been affected by the pandemic.
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