ByZEV STUB, JERUSALEM POST STAFF

The Knesset Plenum approved on Tuesday the first reading of a new economic plan to help the self-employed and business owners who were harmed during the pandemic, in a 17-0 decision.

The plan, called "From brakes to growth" will provide assistance with special grants and property tax payments for small businesses and freelancers.

It is expected to cost more than NIS 2 billion, and was agreed upon on Monday by Alternate Prime Minister Benny Gantz and Finance Minister Israel Katz, in coordination with Prime Minister Benjamin Netanyahu.

"This means another thousand shekels for every business owner who was injured during the corona period, and in addition we are also extending the property tax refund period," Netanyahu said. "The money will immediately make things easier for businesses and in a short time we will open up the whole economy and finally get out of the crisis."

 

Under the approved plan, the eligibility period for business assistance grants for fixed expenses, as set for November-December 2020, will also be extended to include January and February, with the Finance Minister give the authority to extend further if needed.

For small businesses with 2019 revenues of NIS 18,000 to NIS 300,000, grants ranging from NIS 3,000 to NIS 9,000 will be given, depending on the extent of the damage to the business.

For businesses with 2019 revenues of NIS 300,000 up to NIS 400 million, The amount of the grant will be 50% of the average fixed expense grant given to the business so far, up to a level of NIS 50,000.

Companies with revenues above NIS 400 million will be reimbursed for property taxes at a rate determined by the extent of the loss of revenues during the coronavirus period.

 
Ahead of the second reading, it was proposed on Tuesday to extend the reduction of the threshold for the reduction of turnover required to receive the grant to 25%.
 
In addition, it was proposed to establish a new one-time grant that will be given to business owners who suffered long-term damage during the crisis. 
 
Since the new grant is given at the end of the year, it is therefore already possible to assess whether there are businesses whose turnover is in the periods eligible for the grant in 2020, including the grants already received, exceeds their turnover for the corresponding period in 2019.

"The aid plan is a national need," Gantz said.  "All Israeli citizens and business owners in particular need to know that we will do everything to help them in this time of need."

"It is precisely in this complex and challenging period that it is necessary to separate political events from the economic assistance required to overcome the crisis," Katz added. "The public must know that the state leadership will do whatever it takes to overcome the corona crisis, until the State of Israel returns to a reality of prosperity and economic growth."