The Finance Ministry announced on Tuesday a relief package for small and medium-sized businesses to cushion the effects of the war with Iran.
According to the ministry, businesses with an annual turnover of up to NIS 25 million can apply to a loan fund with a prime rate of 1.7%, reduced collateral requirements from credit providers, an increased state guarantee, and a total payment deferral of 6 months.
For medium businesses with an annual turnover from NIS 25 million to NIS 100 million, a total payment deferral will be granted within the existing tracks of the fund for state-guaranteed loans, with a 6-month term, of which 3 months are full grace, as well as a reduction in collateral.
"We see it as of utmost importance to help business owners cope with this period,” said Finance Minister Bezalel Smotrich.
“The economy relies on the business activity of the self-employed, and these reliefs join the safety net that we have been deploying since the beginning of the war and are helping many businesses throughout the period to continue to generate business activity. These reliefs are an additional boost for them," he added.
War hit small businesses since day one
According to a Finance Ministry estimate published in the first days of the war, the country lost NIS 4.5 billion per week due to restrictions imposed by the Home Front Command.
"The opening of the new track is intended to provide businesses with certainty and significant financial tools to deal with the challenges they face. We understand the cash flow difficulties of small businesses and are working continuously to adapt the response so that it will be possible to continue operations, maintain jobs, and strengthen the economic resilience of the economy,” said Accountant General, Michal Abadi Boyanjo, about the new relief fund.
"The steps we are promoting provide businesses with greater cash flow flexibility and reduce the financial burden in the short term. We continue to closely monitor developments and work in collaboration with all parties to create a response that is as accurate and effective as possible," added senior deputy accountant general, director of the Finance Division, Gil Cohen.
Applications for the fund will open on April 19 via the State-Guaranteed Loan Fund website, with the Finance Ministry inviting all business owners who meet the eligibility criteria to apply for the relief fund.