Business Continuity Compensation Grant 2026 Guide
During national security or economic emergency periods (such as Operation Lion's Roar), the State of Israel implements Business Continuity Grant outlines to compensate operating firms for fixed expense overheads and turnover losses (Form 1500 & Form 100).
1. Turnover Reduction Eligibility Thresholds
To qualify for statutory business continuity compensation, an enterprise must demonstrate a minimum reduction in turnover compared to pre-crisis base periods:
| Revenue Loss % | Eligibility Status | Compensation Rate |
|---|---|---|
| Below 25% Loss | Not Eligible | 0% Reimbursement |
| 25% - 40% Loss | Eligible | Partial Overhead Compensation |
| 40% - 60% Loss | Eligible | Increased Compensation Bracket |
| Above 60% Loss | Full Eligibility | Maximum Fixed Expense Reimbursement |
2. Fixed Overhead Expense Reimbursement Multipliers
Fixed expenses eligible for partial grant reimbursement include office leasing, municipal rates (Arnona), insurance premiums, software subscriptions, professional services, and utility bills:
| Annual Turnover Bracket | Fixed Cost Factor Multiplier |
|---|---|
| Up to 300,000 ILS | Fixed Flat Compensation Track (3,150 to 14,000 ILS) |
| 300,000 - 2.4 Million ILS | 7% to 11% Turnover Multiplier |
| 2.4 Million - 20 Million ILS | 11% to 18% Turnover Multiplier |
| 20 Million - 400 Million ILS | Capped Enterprise Compensation Track (up to 600,000 ILS cap) |
3. Calculation Examples & Grant Tiers
Example A: A small sole proprietor with 12,000 ILS monthly turnover experiencing a 40% loss receives a flat grant ranging from 3,150 to 4,200 ILS (or 1,750, 3,000, 3,300 ILS tiers).
Example B: A business with 600,000 ILS annual turnover (50,000 ILS monthly) experiencing a 45% revenue drop (falling from 90,000 to 49,800 ILS) receives a fixed cost multiplier grant calculated at 7% to 11% of turnover, yielding 3,850 ILS, 4,675 ILS, 4,800 ILS, 6,400 ILS, 6,600 ILS, 7,150 ILS, 8,800 ILS, or 9,350 ILS monthly support, up to the 107,000 ILS annual ceiling.
4. Employee Retention & Unpaid Leave (Halat)
Firms retaining salaried workers despite turnover downturns receive dedicated payroll support grants designed to prevent unnecessary layoffs and preserve operational capacity (covering 22%, 75%, 80%, 102%, or 3% payroll support factors).
5. Claims Process & Audit Representation
At Bernstein & Co., we compile historical accounting reconciliations, submit grant claims, and represent clients in Tax Authority audit reviews to guarantee full entitlement payout.
๐ Submitting a continuity grant claim? Schedule a professional claim review at 2 Khuri St, Haifa.
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