Cash Flow Facilitators and Convenient Loan Routes: Business Assistance Outline | Israel today

Will help overcome the crisis?

The Ministry of Finance's assistance program:

As part of the response to the Omicron wave, Minister Avigdor Lieberman announced today (Tuesday) a series of new measures to assist cash flows for businesses and the self-employed.

As part of the measures, cash flow reliefs worth more than NIS 1.3 billion will be granted, and reliefs will be provided in bureaucratic procedures for businesses, reliefs in obtaining state-guaranteed loans, and reliefs for small and medium-sized exporters.

According to a senior official in the Ministry of Finance, the assistance can be divided into three main components: bridging the cash flow gap, deferring payments and bringing forward repayments and facilitating bureaucratic processes.

It should be noted that the assistance does not include compensation for a decrease in turnover, grants to businesses, cancellation of property taxes and other actions taken in previous waves.

According to Gomeram, a senior finance minister, "We are here to help, but we are doing it from a responsible public finance perspective. In the end, we all pay taxes. In 2021, despite the corona crisis, we have finished with 7% growth. We see economic activity. "High, the changes in credit card expenses against each index are not like in a situation of closure. There are industries that have been affected and we have a duty to help."

Photo: Oren Ben Hakon, Photo: Oren Ben Hakon

The source added: "We are here to help and respond to create as much certainty for the economy. As much as we need to be there. At the moment the situation is that at least in the economic indicators, VAT in December and January show significant excess income - through the deductions the economy works.

There may be businesses on the edge that have been significantly affected.

As much as we need we will be there.

The economy is open, everyone is moving around.

The aid is given to many sectors and if the economy needs more aid we will be there. "

Finance Minister Avigdor Lieberman said: "We are at the height of the current wave and want to allow individuals, the self-employed, businesses and industries affected to get through the complex period with the right assistance. We have learned from previous discoveries "It is important for us to give certainty to businesses, to provide significant cash flow assistance and to facilitate wherever possible. We will continue to monitor the data, act responsibly and ensure that no one is left behind."

The full outline

Cash Flow Facilitation 

- Current Cancellation Plus for Government Providers: Shortening Credit Days for Providers and Service Providers that contract with the government - will receive payment for services immediately.

Validity of the directive: March 31, 2022. The Treasury estimates that the amount is NIS 600 million

- A focused move to bring forward the release of refunds in VAT and income tax systems.

Payment of advances to supported institutions in the field of culture in the amount of about 25% of the amount of grants.

Expansion of the activity of the state-guaranteed loan fund:

- Changing the threshold conditions for entering the increased route, so that it will be possible to approve loans in the increased route on the basis of a forecast regarding the decrease in the volume of activity.

Extension of the repayment period for state-guaranteed loans from a period of 5 years to a period of 10 years.

Providing Grace for State Guaranteed Loans: Providing grace for a period of up to an additional year (and a maximum of two years).

Grace for a period of 3 months in state-guaranteed loans granted in the regular loan fund (2016 fund).

Lieberman replies to business owners: "The economy is booming, those who are entitled to assistance - will receive it" // Photo Archive: Knesset Channel

Easing bureaucratic procedures - saving time and money:

- 60-day extension for submitting an exemption dealer declaration until 31.3.22.

- A green route for receiving individual lengths in VAT payments, income tax advances and deductions for representatives whose office has been closed / reduced due to the corona.

- Reduction of quotas for representatives to submit company reports to 45% instead of 55% as of 31.1.22.

Benefits for small and medium-sized exporters:

- Special route for state-guaranteed loans for small and medium-sized exporters: loans for working capital or investment purposes.

- Maximum loan in the amount of 15% of the annual turnover for a period of 5 years, of which 6 months are grace.

The loans can be given in shekels, dollars or euros.

- Reduced collateral will be provided at a rate of only 10%.

- Short-term credit insurance (Top Up Cover): Assistance to exporters and local businesses through short-term credit insurance that provides protection against buyers' insolvency risks.

The plan is valid until the end of December 2022 and is implemented in collaboration with the private credit insurance companies.

Long-term credit insurance (Long Up Cover): Assisting small and medium-sized exporters in carrying out export and foreign trade transactions, the insurance assists exporters in penetrating emerging markets that embody a higher return on transactions.

Were we wrong?

Fixed!

If you found an error in the article, we'll be happy for you to share it with us