Finance Minister Bezalel Smotrich and Accountant General Yali Rothenberg announced today (Sunday) the opening of special loan tracks within the state-guaranteed loan fund in order to help businesses deal with cash flow difficulties and working capital needs that may arise from the effects of the war on the economy.
The fund will open two special tracks - a track for small and medium-sized businesses and a track for large businesses - within which loans will be offered to businesses all over the country under attractive conditions while providing a significant grace period on principal and interest payments, increasing the rate of the state guarantee for each loan, reducing the rate of collateral that businesses are required to provide, and significantly reducing the application process.
The loans will be provided through 11 different credit providers, as chosen by the business, including seven banks (Bank Leumi, Bank Hapoalim, Bank Mizrahi, Discount Bank, Mercantile-Discount Bank, Bank of Jerusalem, and Bank Yahev) and four non-bank credit providers (Company MAX, Visa Kal, Gamma Management and Clearing, and BTB).
The first track, intended for small and medium-sized businesses with an annual turnover of up to NIS 100 million, will total NIS 8 billion. The second track, intended for large businesses with an annual turnover of up to 500 million shekels, will amount to 2 billion shekels.
Minister Smotrich said, "We are working with a wide variety of tools so that the businesses and employees will succeed in the challenges faced by the economy. The state-guaranteed loan fund will provide an immediate and attractive solution to businesses all over the country that are facing cash flow difficulties in view of the emergency that has befallen the economy. We are committed to giving the proper response to businesses, and the loan fund is another important step that will provide a response to big businesses. We have an obligation to maintain the functional continuity of the economy, and we are doing so. Our soldiers at the front need to know that there is a strong and united economy and that the state provides a solution economic support, and so it will be."
Accountant General Rothenberg said, "The fund for state-guaranteed loans to businesses is a significant tool that has proven itself in previous crises and has helped tens of thousands of businesses all over the country. We monitor the development of the war and its effect on the activities of businesses in the economy at all times and are prepared to assist as much as possible in providing solutions to the challenges they face In this difficult time."