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- The New Loan Fund for Small Businesses
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The New Loan Fund for Small Businesses 2023
State-guaranteed loan for small and medium businesses
State-guaranteed loan for small and medium businesses
2023 Fund!
Dear business owner,
At Mercantile, you come first, and we offer you a state-guaranteed loan while fully adapting it to your business needs
Mercantile Bank was defined as a "credit provider" within the framework of the new state-guaranteed fund in a variety of tracks tailored to diverse business target audiences.
Why Mercantile?
- Exemption from collateral (except for a personal guarantee) on a loan of up to NIS 500,000.
- Exemption from loan processing fee.
- Long loan period of up to 5 years with the option of a grace period (deferral of principal payments) of up to 6 months
To contact us, call now *5600
State-guaranteed loan conditions:
| Subject | Explenation |
|---|---|
| Loan Amount | For annual sales turnover of up to NIS 6.25 million, including a business in formation – up to NIS 500,000. From annual sales turnover of NIS 6.25 million to NIS 100 million - 8% of turnover For exporters (minimum export volume of $250,000) - 12% of sales turnover For financing investments in industry – up to 15% of sales turnover and for a period of up to 12 years. For farmers (not livestock, turnover of up to NIS 5 million) – up to NIS 750,000, for periods of up to 10 years. |
| Fees | Up to 5 years including a grace period of up to 6 months (5 installments). For financing industrial investments - up to 12 years (including a grace period of up to 6 months) |
|
Collateral Required |
Personal guarantees of business owners. |
Eligibility Requirements
The applicant is a business incorporated in Israel
Annual turnover of up to NIS 100 million.
The business accounts and/or the private accounts of the business's shareholders are not restricted or subject to restriction, and there are no legal claims/ receivership/ liquidation proceedings/ freezing of proceedings/ creditor settlement, any execution procedures, foreclosures pending against the business or any of its shareholders.
The business has no outstanding tax liabilities past due to the Israeli tax authorities, thus according to a declaration by a CPA on behalf of the business
The business has no debt classified as a “problematic debt” as defined by law, in any of its existing accounts with the bank.
How do you get a loan from the fund?
Fill out an application form on the website at govextra.gov.il/mof-gloans
Attach required material as stated on the website. The application is forwarded to the "coordinating body" (BDSK CPA firm) for review of criteria and suitability.
After you have successfully passed the initial review, the coordinating body will contact you and you will be asked to prepare a business plan in accordance with the fund's requirements.
After the coordinating body's recommendation is formulated, the application will be forwarded to the Bank, and after a short underwriting process, the application will be brought to the fund's credit committee for discussion.
The committee's decision will be sent to you by the coordinating body.
Comments:
- The above does not exhaust the requirements and conditions required by the Bank, the coordinating body, the state and the committee.
- The granting of credit is subject to the discretion of both the Bank and the committee and to the provision of collateral to the full satisfaction of the Bank and the committee.
- It should be emphasized that the above does not constitute any obligation on the part of the Bank to grant credit.
- The Bank and/or the committee may change the terms from time to time and without prior notice.Subject to the Bank’s procedures and any law.
- Complete and binding details are available at the branches.
- Failure to meet the repayment of the loan may result in late payment interest and execution procedures