Finance Minister increased compensation for businesses affected by the Corona crisis in 2020

Finance Minister Avigdor Lieberman has decided to increase compensation for businesses affected by the Corona crisis in 2020. The compensation will be given as a one-time grant. The Ministry of Finance has established several assistance routes for businesses that have been affected due to the decrease in the scope of their activities. After examining the entitlements and providing a response to businesses that were particularly severely affected during 2020.
Finance Minister Avigdor Lieberman: "Thanks to the responsible conduct of the government and the preservation of business sector activity, we were able to reduce the harm to businesses in the fourth wave. Therefore, it was decided to increase the grant for the fixed expenses of businesses that have significant rental costs as part of the current expenses. "
Economy and Industry Minister Orna Barbibai: "The Corona virus is still here and it requires us to produce solutions that will make it easier for businesses to maintain a routine and continue to grow.
As part of the assistance program for businesses affected by the corona restrictions, a fixed expenditure grant was determined by the Tax Authority. This grant is based on the total fixed expenses of the businesses, including rental expenses, property taxes, employees who did not fall ill, etc. In the fixed expenses grant, restrictions were set on the amount of the grant and the scope of the fixed expenses for which the grant was given in accordance with the level of turnover of the business. However, for various businesses (such as gyms) the scope of the grant does not affect their fixed expenses, as the rate of their rental expenses is higher than the rate of expenses recognized in the grant of the Tax Authority.
To this end, it was decided to complete a grant for businesses whose rental expenses exceed 17% of turnover, and that in 2020 these expenses were similar (90% at least) to rental expenses paid in 2019. The grant will be given to businesses that were entitled to at least 3 grants from the tax authority and their injury rate Stood at at least 80%.
The amount of the grant is NIS 100 per meter (as stated in the property tax bill and subject to a rental agreement), and up to NIS 120,000 per business, but the total grants received from the Tax Authority and the rental grant will not exceed the maximum fixed grant grant.
The grant will be operated by the Small and Medium Business Agency, as part of the assistance programs for businesses affected by the corona including a tax rebate and a retention grant. Submission of the grant will open during the month of December on the website of the Small and Medium Business Agency - the website link for submitting applications will be published prior to the opening date for submitting applications.