The Israel Innovation Authority will inject NIS 650 million into Israeli tech companies after the Ministry of Finance's Accountant General approved transfer of the budget. During the first quarter, the Israel Innovation Authority had no budget to provide grants to promising startups and projects because there was no permanent government to allocate its budget.
Since the start of 2020, 1,161 grant requests have been filed with the Israel Innovation Authority but no money has been disbursed because of the absence of any budget. However, NIS 600 million in grants will now be fast tracked to those projects already approved. The additional NIS 50 million will be transferred to companies developing products to help combat coronavirus.
Israel Innovation Authority CEO Aharon Aharon said, "The Ministry of Finance also understands that Israel's advanced technology industry is the key to moving out of the economic crisis on the day after the virus. The tech industry is based for the most part on private sector capital. From past experience this source of financing is significantly reduced during times of crisis. In addition, there is a major fall in sales income following global crises. For companies producing physical products there is another problem in the chain of supply, subcontracting, production capability and distribution."
He continued, "The role of the government through the Israel Innovation Authority is to increase financing for projects at a time like this and let good companies get through the crisis. We are in contact directly with the companies on a daily basis with official representatives and a range of relevant organizations that can assist in the crisis - from the Ministry of Finance through to the Israel Tax Authority - they all understand very well the distressing situation and are open to help with immediate measures that will prevent an additional worsening of the companies' situation."
Published by Globes, Israel business news - en.globes.co.il - on April 2, 2020
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