Eligible applicants are SMEs with less than 40 registered employees operating in one of the five subsidized sectors: Industry, Tourism, Agriculture, High Technologies and Crafts.
All types of legal economic entities are eligible for Kafalat Basic Loans. The borrower may be an individual, a sole proprietorship, a simple partnership, a limited liability company, a joint stock company, a cooperative or an NGO.
The business activity has to take place and be registered as an entity in Lebanon.
Criteria for existing SMEs and Start-ups
Priority will be given to start-ups and SMEs having the following criteria:
- Potential to generate significant value added for the business and the Lebanese economy.
- No default under any credit facility should have occurred for 3-years preceeding the date of the loan request.
Previous Kafalat Beneficiaries
Loan guarantee extensions and increases cannot benefit from an additional grace period. Kafalat Basic loan guarantees have a maximum duration of 7 years, starting from the date of the initial guarantee.
SME Development Phase
The business venture may be an already existing one or a start-up.
Non Eligible Activities
SMEs aiming to finance the following are not eligible for a Kafalat Basic Loan:
- Repayment of existing debts.
- Payment of business expenses incurred prior to the issuance of the guarantee.
- Manufacturing or selling arms, weapons, or ammunitions.
- Activities that contribute to the violation of international labour law and human rights conventions or Lebanese Labour laws.
- Any activity defined as illegal, environmentally hazardous or dangerous for human health.
- All activities revolving around the gambling industry.
- Activities involved in currency speculation.
- Security investments or other types of financial assets.
- Activities related to the real estate sector.