New self-employed grant won't help most businesses

New plan to help self-employed increases number of Israelis eligible for grant - but doesn't increase amount of money given, report says.

Arutz Sheva Staff ,

Self-employed protest in Tel Aviv
Self-employed protest in Tel Aviv

A plan presented last week by Israeli Prime Minister Binyamin Netanyahu and Finance Minister Yisrael Katz (Likud) to provide aid to those self-employed who suffered financially due to the coronavirus outbreak may not offer as much aid as promised.

The plan was approved by the Knesset on Sunday, and was said to promise up to 7,500 NIS ($2,170) to all self-employed who are struggling.

However, according to Israel Hayom, many of those applying have received notices from the Tax Authority that they are not eligible for the full sum.

The funds are set to be transferred beginning on Wednesday. However, many of the recipients will be eligible for just 2,000 NIS ($579), while others will receive more than 2,000, but substantially less than the 7,500 maximum.

In previous aid installments for the self-employed, the average payout was 4,000 NIS ($1,158), and according to Israel Hayom, this amount does not seem set to change under the new plan. What will change, however, is the number of self-employed who are eligible to receive the funds.

Under the new criteria, anyone whose annual income was less than 640,000 NIS ($185,193) and whose sales took at least a 40% hit, will be eligible for the money. Previous installments required a hit of at least 50%. The grant will be 70% of the estimated income, up to a ceiling of 7,500 NIS. As a result, only those whose income was between 10,715 NIS to 53,333 NIS monthly, and whose sales took a 40% hit, will receive the full 7,500 NIS grant.