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🇮🇱 Israel /Economy & Trade

Finance Ministry’s relief loan to Israel’s small, medium businesses: How does it work? - explainer

From Jerusalem Post · (1d ago) English

Summarized and contextualized by DistantNews.

TLDR

  • The Israeli Finance Ministry has launched a relief package for small and medium-sized businesses impacted by the war with Iran.
  • The package includes low-interest loans, reduced collateral, and payment deferrals for businesses with annual turnovers up to NIS 100 million.
  • This initiative aims to provide financial certainty and support business activity, maintaining jobs and economic resilience.

In these challenging times, Israel's Finance Ministry is stepping up to support its vital small and medium-sized businesses. Recognizing the significant economic impact of the ongoing conflict, the ministry has announced a comprehensive relief package designed to provide much-needed financial breathing room.

We see it as of utmost importance to help business owners cope with this period.

— Bezalel SmotrichFinance Minister Bezalel Smotrich on the importance of supporting business owners during the war.

This initiative offers tangible assistance, including loans at a prime rate of 1.7%, eased collateral requirements, and substantial payment deferrals of up to six months. For larger medium-sized businesses, similar deferrals and support through existing state-guaranteed loan tracks are available. This demonstrates a clear commitment to cushioning the blow of war-related restrictions, which have already cost the economy billions.

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.

— Bezalel SmotrichFinance Minister Bezalel Smotrich explaining the economic rationale behind the relief measures.

Finance Minister Bezalel Smotrich emphasized the critical role of businesses in the economy, stating that these reliefs are an "additional boost" to the safety net already in place. The Accountant General, Michal Abadi Boyanjo, highlighted the goal of providing "certainty and significant financial tools" to help businesses navigate cash flow difficulties and maintain operations and jobs. The State-Guaranteed Loan Fund website will open applications on April 19, inviting eligible business owners to seek this crucial support.

The opening of the new track is intended to provide businesses with certainty and significant financial tools to deal with the challenges they face.

— Michal Abadi BoyanjoAccountant General Michal Abadi Boyanjo on the purpose of the new relief fund.
DistantNews Editorial

Originally published by Jerusalem Post. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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