Cabinet Approves 2 Billion Shekels for Businesses and Self-Employed

YERUSHALAYIM -
Israeli Minister of Finance Yisrael Katz. (Miriam Alster/Flash90)

The Cabinet on Monday approved a two-billion shekel financial assistance package to help Israeli business owners and the self-employed survive the Covid-induced economic crisis.

“Today, the Finance Minister and I are submitting a proposal to give over NIS 2 billion in additional grants to the self-employed and to business owners. This is thousands of shekels more for every business owner who has been hurt during the coronavirus period. We are also extending the period for paying local property taxes. The money will – immediately – make it easier for businesses and within a short time we will open the entire economy and we will emerge from the crisis once and for all,” Prime Minister Netanyahu told the ministers.

Finance Minister Yisrael Katz said: “Additional assistance is necessary in order to enable businesses to get through the process between the vaccines and the end of the lockdowns which we will perhaps yet need. We are in the midst of a stretch that will help the Israeli economy achieve full opening.”

The main points of the plan:

  1. The lenient eligibility threshold for the assistance grants to businesses regarding regular expenses as was determined for November-December 2020, will also be extended for the January-February 2021 eligibility period. It was also determined that the Finance Minister has the authority to apply this extension to the remaining eligibility periods.
  2. An additional assistance grant will be given to businesses:
  3. For businesses with 2019 turnover from NIS 18,000-300,000 and whose turnover declined by at least 25% during March-December 2020, as compared to March-December 2019, the grant ceiling will be determined according to the depth of the loss:

* Loss of 25-40% in business turnover – grant of up to NIS 3,000

* Loss of 40-60% in business turnover – grant of up to NIS 5,000

* Loss of over 60% — grant of up to NIS 9,000

For exempt businesses, the decline in 2020 turnover will be compared to 2019 turnover in order to determine eligibility for grant amounts.

  1. For businesses with 2019 turnover from NIS 300,000-4,000,000, which were eligible for three or more Tax Authority assistance grants regarding expenses, the ceiling of the grant will be 50% of the regular expense grants that the business has received up until now for eligibility periods in 2020, up to a ceiling of NIS 50,000.
  2. The Interior Minister will amend those regulations in the framework of which local property tax refunds will also be given to those businesses that suffered over NIS 400,000,000 in losses; the eligibility will be determined according to the eligibility threshold for businesses with NIS 200,000,000-400,000,000 in turnover relative to the same period in 2019.