A state-guaranteed loan with favorable terms - Interested in starting a business? Looking to leverage your business? Need credit and struggling to obtain it? The solution might be within your reach.
Who is eligible for a state-guaranteed loan?
A state-guaranteed loan is aimed at providing financial assistance to small and medium-sized businesses. It is managed by the General Accounting Department at the Ministry of Finance and the Small and Medium Enterprises Agency at the Ministry of Economy.
The purpose of the fund is to assist new business owners who wish to establish a new business, as well as existing business owners who aim to develop and grow, especially given the difficulties small and medium-sized businesses face in obtaining credit for operational financing and growth.
The loans are granted from funds financed by entities for which the state provides a guarantee (for the majority of the amount) under favorable and attractive credit terms.
The fund offers loans of up to 500,000 NIS to small and medium-sized businesses with state guarantee and with significantly lower securities than those required by banks.
There is an option for repayment over five years and an option to defer the first payment by six months.
Our office has experience in accompanying and handling clients for the purpose of obtaining a state-guaranteed loan and provides a full range of services for this purpose:
- Checking the business owner’s eligibility for a state-guaranteed loan.
- An initial and thorough examination of the business situation – matching the business’s financial capabilities to the request.
- Preparing a professional business plan required for obtaining the loan – the actual approved credit amount depends on the business plan presented and the repayment capability of the business owner.
- Full accompaniment in meetings and negotiations.
It is important to emphasize that every loan requires a logically economic plan for the use of funds in order for it to benefit the company.
The possible tracks for a loan are:
- Business in Establishment: Businesses in the establishment phase are eligible for a loan of up to half a million NIS, with the state guaranteeing 85% of the first 300,000 NIS and 70% of the remainder. For this purpose, securities of 10% for the first 300,000 NIS and 25% for the remainder are required.
- Business with a turnover of less than 6.25 million NIS is eligible for a loan of up to half a million NIS, with a state guarantee rate of 70% and securities of up to 25% of the loan amount required.
- Business with a turnover higher than 6.25 million NIS is required to provide securities of up to 25% for a loan amounting to 8%-12% of the turnover.
What are the chances of receiving a loan?
The chances of obtaining a loan depend on meeting the threshold conditions set for the loan’s approval. The more professional and comprehensive the economic plan presented by the business owner, which outlines a better financial situation, the greater the chance of successfully completing the process and obtaining a loan under attractive terms.
Our office offers financial assistance and accompaniment to companies with the knowledge, experience, and expertise in securing financing and assistance in dealings with banks and financial entities for grants.
Our services include evaluating the company’s financial status, business plans, and finding the most precise and optimal solutions for the client.
For information on additional areas of expertise of the firm.
