General Track – a loan of up to ILS 8 Million
The Fund Terms
|Maximum loan:||ILS 500,000 for new business, or businesses with an annual turnover (Turnover) of up to ILS 6.25 million.|
8% of the Turnover for businesses with a Turnover of ILS 6.25-100 million.
|Loan Period:||Up to 5 years with a six month grace period and 54 repayments.|
|Interest Rate:||The interest rate habitual with the bank for loans of the same sort.|
|Assurances:||60%-85% of the loan is guaranteed by the State.|
The bank may require from borrowers collateral for the balance up to 25% of the loan (For more detailed information about the State guarantee and required assurances contact with our consultants).
In addition an owner guarantee is required.
The State has set a number of preliminary requirements to getting a loan:
- Annual turnover of up to ILS 100 million.
A business with annual turnover of up to ILS 25 million is considered a small business.
A business with annual turnover of ILS 25-100 million is considered a medium business.
- In the Investment Track - equity investment of no less than 20% of the total investment.
- In the Set Up Track – equity investment of no less than 20% of the loan.
- The business has no debt with regard to which there is no arrangement with the tax authorities.
- None of the accounts of the business and/or of any of the shareholders is restricted and/or foreclosed, or about to be restricted and/or foreclosed.
- There are no proceedings initiated by a bank against the business or its owners, including execution proceedings.
- The business is not under receivership, dissolution, stay of proceedings and/or arrangement with creditors and is not facing execution proceedings.
- The business does not have any impaired debt in its existing bank accounts.
- The business does not have any outstanding loans from the Independent New-comer Fund, made available during or after the year 2012, or the Exporters’ Fund, even if made available by a different bank.
- If the business is a non-profit organization – none of its members has any restricted account.
Getting a Loan
The process of getting a loan has the following main stages:
- The applicant approaches a bank or a consultant.
- The applicant’s needs are examined in order to determine the suitable loan track. Accordingly a questionnaire is filled and submitted to one of the Fund coordinating bodies.
- The applicant and Tavor meet with the coordinating body.
- The coordinating body submits a recommendation with the bank.
- Based on that recommendation and the recommendation of Tavor, the bank conducts its own examination.
- The application is considered at the Credit Committee and its decision is notified to Tavor.
Tavor’s Added Value
Consulting Tavor insures that the questionnaire is filled and the business plan is put together professionally and responsibly and the highest success chances.
Tavor is the most experienced entity in the system: Tavor established and developed the Fund for the State, and set its procedures and examination methods. The current activity of the Fund is based on methodologies and procedures developed by Tavor.
Tavor has examined over 30’000 businesses and maintains a sectorial database, that may assist in quickly and cost-effectively putting together business plans with unequaled efficiency and professionalism.
Former employees of Tavor hold most of the decision making positions, as examiners and as members of the Fund’s Credit Committee.Click here for a list of consultants