Assistance Program for Small and Medium-Sized Businesses Affected by Corona: Rental Assistance Grant Reopens for Submission, with a number of additional updates decided by the Government
Following the government’s approval of the expansion of the circle of eligible businesses, applications for the grant can now be submitted, under the new conditions, on the website of the Small and Medium Business Agency, at the Ministry of Economy and Industry.
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 was based on the total fixed expenses of the businesses, including rental expenses, property taxes, employees who did not go on sick leave, etc. The fixed expenses grant set limits on the amount of the grant and the amount of fixed expenses for which the grant was given. In November 2021, the government approved a supplementary grant for businesses whose rental expenses are exceptionally high in relation to the turnover, and the conditions were recently updated so that more businesses can benefit from the grant.
The government decision of November 2020 stipulated that the completion of the grant for businesses would be given to businesses whose rental expenses exceed 17% of turnover, and that in 2020 these expenses were similar (90% at least) to rental expenses paid by the business in 2019. The grant will be given to businesses eligible for at least 3 grants From the tax authority and their injury rate was at least 80%.
The amount of the grant is NIS 100 per meter (as stated in the property tax bill and subject to a lease agreement), and up to NIS 120,000 per business, but the total grants received from the Tax Authority and the lease grant will not exceed the maximum grant for fixed expenses.
The option to apply for a rental expense grant, which opened in January, is now reopening in favor of businesses and after a number of further updates the government decided on last month. Here are the updates:
– The volume of rental expenses paid by the dealer by 2020 will not be less than 80% of the volume of rental expenses he paid in 2019 (instead of 90% before the amendment).
– Adding another period, January-February 2021 or March-April 2021, to examine the period in which the dealer had a turnover decrease of more than 80%. So now 80% damage should be shown in 3 out of 6 periods (instead of 3 out of 5, before the repair).
– It was also possible to include rental expenses spread over a later period (but the amount of the grant will not exceed the amount actually paid). This is due to the fact that in many cases in view of the economic difficulty encountered by businesses, the rental expenses paid by dealers up to the year 2020 were spread over several years. In addition, businesses that have withheld the payments will be able to apply for a supplement to the grant, depending on the actual rental payment, for about five years.
– It was possible to recognize some of the management fees paid by the business as rental expenses. This is because it has become clear that there are cases where the division of payment between rent and management fees is made in accordance with accounting considerations and it does not actually reflect the consideration for the service received.
Ran Koiti, director of the Small and Medium Business Agency, said: “The Small and Medium Business Agency is always attentive to voices rising from the ground. Eligible businesses. “