The Knesset plenum finally approved the business grants program

Israeli Knesset: . Photo by Uzi Bachar

The Knesset plenum approved a proposal Financial Assistance Program Law (New Corona Virus) (Temporary Order) (Amendment No. 4), 5721-2021. In the third reading, 26 supported without opponents.

The law stipulates that businesses will continue to be eligible for the assistance grant for participation in fixed expenses required to operate their businesses during the corona period, for a 25% or more decrease in their business turnover also in January and February 2021, and also provides one-time compensation to businesses suffering from prolonged crisis.

The fixed expenses grant is paid for eligibility periods of two months, and the basic condition for eligibility is a decrease in the cycles of business activity. Due to the fact that many industries did not return to the scope of activity they had before the crisis and the government’s decision on a third closure, the law stipulates that the eligibility conditions for January-February 2021 for fixed expenses grant, will continue to be 25% to 60%. To its size. This is an extension of the relief in the conditions of receiving the grant compared to the wording of the original law, which set a decrease of 40% to 80%. In addition, the law authorizes the Minister of Finance to extend the relief period (compensation starting with a 25% decrease in turnover) until June 2021, which is currently the date for the end of the law and the distribution of grants.

In order to fund this relief and the additional one-time compensation provided by this law, the law stipulates that the compensation for a fixed expense grant for the months of May and June 21, will be half the amount paid up to that month. A full grant for these months will be awarded only if it is budgeted under the Basic Law of the State Economy or under the Budget Law for 2021.

Minister of Finance, Israel KatzThe Knesset finally approves the “inhibits growth” program, which will provide special grants for long-term damage of thousands of shekels, to hundreds of thousands of self-employed and business owners who were injured at least 25% during the corona period, in addition to property tax refunds. We are in the final stages, so in addition to the economic safety net that provides them with grants and personal salaries on a regular basis every two months, we have provided additional assistance amounting to about NIS 2 billion to the self-employed and businesses so that they can go through the third closure period. I welcome the approval of the grants in the Knesset and the neutralization of political considerations for the citizens of Israel. As I said, we will not leave anyone behind. “

In addition, the law stipulates A new one-time grant that will be given to dealers who suffered long-term damage during the crisis. For a dealer whose turnover is up to NIS 300,000, it is determined that the compensation will be awarded in accordance with the amount of the damage in the decrease of his turnover (similar to the compensation outline for fixed expenses), for a turnover of 25% -40% – the dealer will receive NIS 3,000, for a reduction of 40% -60% NIS 5,000 for a decrease of 60% or more – will receive NIS 9,000. For a dealer with a turnover of more than NIS 300,000, it is determined that the compensation will be half of the amount of all the grants for fixed expenses he received, provided that this amount does not exceed NIS 9,000 and does not exceed NIS 50,000. In the case of a business with a turnover of NIS 300 million or more, it was determined at the request of the committee that the compensation will be 60% of the amount of all grants for fixed expenses received, up to a ceiling of NIS 50,000.

In addition, it was added to the law that from January 2021, the condition under which a business that was disqualified by the Tax Authority in 2018 and 2019 will not be eligible for assistance grants will be abolished, even if it meets the conditions set by law, and that each such case will be examined individually. The law also stipulates that no foreclosures will be imposed on the grants anchored in it. The law also stipulates the extension of the period regarding the assistance grant for the self-employed and controlling employees due to loss of profits due to the spread of the corona (social grant for businesses), so that the grant will also apply to the period January and February 2021.

MK Oded Forer: “I must lower the level of solemnity that the coalition has on the aid program. We are required to spend more and more money, just because the Israeli government was afraid to implement the traffic light plan. To whom did she disappear? “Put the entire state of Israel in closure only because they are afraid of dealing with some members of the coalition who are not ready to close certain areas.”

MK Yaakov Asher Responded: “It is impossible not to comment on the remarks and incitement of MK Forer, who is color blind. He has only one color at the traffic light – black. Only this interests him at the traffic light, ultra-Orthodox and maybe a little Arab sometimes, depending on the political situation. If for a week Oded Forer and a friend of his do not mention the name Haredim, they have nothing to talk about. “

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