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התרעות 32

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Small Business Assistance

The state of Israel has set a special fund for providing loans to small and medium businesses, in order to support dealing with the effects of the Coronavirus on business. In coordination with the Central Bank of Israel, the commercials banks will provide loans to business under the following conditions:
1. Maximum loan amount - up to NIS 500,000 or up to 8% of the last annual turnover-  the higher of the two amounts.
2. Loans for bridging flow gaps, with a spread of up to 5 years and the possibility of beginning repayments after six months from the date of loan provision.
3. A state guarantee is increased by 85% of each loan.
4. Substantially reducing the guaranties requirement up to only 10% of the loan.
5. Banks will shorten the duration of the loan review for up to 9 working days.
6. Eliminating the cost of economic check payable to the state under other loans.

Deferred VAT - Reporting and payment deadlines for the period of January and February 2020 have been updated and will be as follows:
· Companies reporting VAT on bi-monthly reporting - deferred until April 27, 2020.
· Companies Report One-Monthly Report - Deferred until March 26, 2020.
Application for postponement of municipal taxes and water payments in some municipalities and in some water corporations – Please contact the relevant local municipality.
Further payment relief, will be updated, in accordance with official announcement.