STEP TO STEP GUIDE HOW TO CLAIM THE GRANT FOR SMALL BUSINESSES

In this article, I am going to address the small business grants that the government is offering. Following is the latest information regarding the NIS 6,000 grant.

If you fall under these 5 categories, you are unfortunately currently not eligible:

  1. You were under 28 years of age in 2019 it has now been changed to the age of 20
  2. You are a controlling shareholder in the business
  3. Your annual earnings in 2018 exceeded NIS 240,000
  4. Your monthly earnings in 2018 were below NIS 2,000
  5. You opened a business in 2019/2020; this means you will only be eligible to receive a grant after submitting the annual report for the year 2019.

The amount of the grant

  1. The grant for self-employed individuals will be up to a maximum of NIS 6,000. The amount of the grant will be determined according to the amount of income according to the amounts indicated, with the maximum amount of NIS 6,000 being awarded to those having a monthly income of between NIS 9,231 and NIS 16,000.
  2. Exact grant amount: 65% of your monthly taxable income in 2018.
  3. The grant will be transferred to your bank account before Passover.

Conditions for receiving the grant

  1. There must be a decrease of at least 25% in the business cycle of March-April 2020 against March-April 2019. After April, the percentage of the actual decline will be checked. If the decrease is less than 25%, you will be required to return the grant.
  2. You will receive the grant only if the business’s annual income for 2018 was between NIS 24,000 and NIS 240,000, according to the report submitted to Mas Hachanasah.
  3. Annual income includes all revenue received in 2018, including self-employed income, as well as if an employee, rental income, etc.
  4. If the 2018 report has not yet been submitted, you will not be eligible for a grant.
  5. If both spouses in the family unit are independent, each of them is separately eligible for a grant.
  6. Provided that the combined income of the entire family unit in 2018 does not exceed NIS 340,000 per year.
  7. Only independent and non-controlling shareholders are eligible for the grant.
  8. The business must have been in operation at least by February 29, 2020, according to the statement of the business owner.

Please note:  These conditions have not yet been passed in emergency legislation by the Knesset and therefore may be subject to change!

Filing for a grant

The grant application can be found on the Mas Hachnasah website. To complete the form, you must first receive a password to access the website application.

Here is the link

https://secapp.taxes.gov.il/SrVeImut/frmRashiKnisa.aspx#no-back-button

STEP 1

If your Hebrew is not good enough, please use google translate.  In order to receive your password,

you have to click on רישום

STEP 2

The page looks like this – you click on the small box at the bottom right hand side, because nobody has the answersto these questions.  Press enter,

STEP 3

Another box will open and you need to answer these questions:

  1. The date that your ID was issued.
  2. Your driving license number.
  3. Your passport number.

Please answer these questions and another window will open.

STEP 4

Again if you do not understand Hebrew well enough, use Google Translate.

You have two options here to receive the password either via your mobile phone or email.  You can choose which is most convenient, enter your details.  Remember to click the small box in the bottom right hand corner.  You will then receive the password either by sms or email and you have to use it within 30 mins.  You then access the website.  The link is:

https://secapp.taxes.gov.il/logon/LogonPoint/tmindex.html

You will then access the following window:

You enter your ID number and the password you received.  Another window will open up again you will then receive another one time password either by sms or by email which you will be asked to enter.

Update 3rd April 2020

The application button for the loan now appears on the website and it looks like this:

STEP 1

In order to access your איזור אישי you access the government web site again, just click on the link

https://secapp.taxes.gov.il/SrVeImut/frmRashiKnisa.aspx?src=LONew%23no-back-button#no-back-button

Enter your ID number and the password that you received then you will again receive another password to which you have to enter as well.

STEP 2

Then you will arrive at the page where you can apply for the loan – you press on the but מענק לעסקים לתקופת הקרונה the grant for businesses in the time of the Coronavirus.  Then you access the following page:

STEP 3

You will then receive details about the amount that you are entitled to and then you press the button on the bottom left hand side אני רוצה להגיש בקשה למענק – I want to apply for the grant. Then another window will open

You click on the boxes stating that you agree to the following:

  • Your business existed between 1.9.2019 and 29.2.2020
  • I predict that there will be a decrease in income by at least 25% in the months of March and April 2020  compared to March and April 2019
  • I know that on this amount I will have to pay income tax
  • I know that if there is no decrease in my business that I will be required to return the grant amount.

STEP 4

Then you enter your name in the signature box and press המשך continue.

You should then receive the following window confirming that you request was successfully processed.

The Government has promised that we will receive the bonus by Pessach.

If you have any questions regarding how to handle your finances during the coronavirus crisis, please feel free to contact me on 054-4217207.

In the meantime, please stay indoors, safe and healthy.