The government on Friday approved an 8 billion shekel ($2.3 billion) bailout plan for small businesses and self-employed Israelis, whose livelihood has been severely compromised by the lockdown measures imposed in an effort to curb the spread of the coronavirus.
The Israeli economy has been hard hit by a lockdown. Initial restrictions reduced economic activity to 30%, forcing some of the public sector and most of the private sector and to pause operations. Over a million Israelis have been placed on unpaid leave or fired, causing unemployment to skyrocket from 4% in pre-pandemic days to over 26%.
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Last month the Finance Ministry announced it will pour NIS 80 billion ($22 billion) into the economy to help it weather the coronavirus crisis, but the measure earned criticism for excluding most small businesses and the self-employed public. Friday's measure seek to rectify that oversight.
The plan includes a grant of up to NIS 400,000 ($114,000) per business, depending on how crippled its operations have become over the past month, the Finance Ministry says in a statement.
It also includes a second stipend for self-employed Israel, up to 70% of their regular income with a maximum of NIS 10,500 ($3,000).
Applications can be made via the Tax Authority's website from the first week of May. Finance Ministry data shows that over 600,000 self-employed Israelis will be eligible for the special payment.
"This is a significant step supporting the resumption of regular economic activity," the Prime Minister's Office and Finance Ministry said in a joint statement.
The government has been trying to outline a gradual return to economic activity but has been criticized for making decisions that discriminate between various retailers in the private sector.
According to a draft presented on Friday to the government by the Health Ministry, all stores outside of shopping malls will be allowed to open, including eateries for pickup and takeaway, florists, jewelry shops, and money changers.
There will be restrictions on the number of customers in the store and customers will be monitored for any virus symptoms. Employees will be required to wear masks and gloves.
Store owners will be required to submit a statement of compliance with the Health Ministry's conditions with their local authority, and any breach would subject them to a six-month jail sentence.
As of Friday morning, some 193 Israelis have died of coronavirus, and the number of confirmed cases reached 14,882. Of those, 139 patients are in serious condition, while some 5,685 Israelis have recovered from the virus.
