Manufacturers Association demands to ease the conditions of assistance

The Manufacturers Association is demanding that the finance minister change material conditions in the Corona route, established last week as part of the Small and Medium Business Relief Fund. Last week, the state allocated NIS 8 billion to credit under the fund, but the accompanying conditions for providing credit can make it very difficult for businesses in distress, at least according to the association's president, Dr. Ron Tomer. The Treasury and the Bank of Israel hold high hopes for the fund, but according to professionals, business owners Many will find it difficult to get help from her on time and most of the money allocated to her will not be used.
In a letter sent today to Finance Minister Moshe Kahlon, Tomer emphasizes the need to raise the rate of state guarantee coverage with banks. While the State is committed to providing a guarantee of 85% of any loan that is approved, it greatly limits the possibility of approving loans to businesses with a high probability that they will not be able to repay the loan on time. "According to the agreements between the state and the banking system," writes Tomer. "The rate of non-repayment coverage by the state is 8.5% -10% of the value of the loans. Although this is a much higher non-repayment rate on ordinary days (which is about 0.5% for small businesses), we are in an exceptional situation requiring bank guarantees. Raise state-level coverage to 15%. "
In addition, Tomer wants to expand the possibility of applying to the fund also for larger companies, whose annual business turnover reaches NIS 500 million (currently the limit is NIS 100 million), as he said in previous crises. Tomer also wants to shorten eligibility testing and cancellation of forms, including the obligation to submit a business plan as well as sales forecasts for years to come. According to him, "This is a special course that requires the affidavit of a signed affidavit by the attorney regarding the flow of the Corona, and the uncertainty created by the current crisis. It is a waste of valuable time, for a test that should be much simpler. The application forms must be shortened, many clauses canceled, and the loan review time reduced even further. The Lending Fund is an important cash flow tool these days, the changes proposed above will provide a much better response to many existing ones so that many businesses can survive the crisis and continue to contribute to the economy and employment. "