Guarantees for Loans to Small and Medium Enterprises

Kafalat guarantees loans that are given by banks operating in Lebanon to finance projects in one of the five subsidized sectors: Industry, Agriculture, Tourism, High Technology and Traditional Crafts. Kafalat does NOT grant loans.

If your work is a profession such as a barber, a dentist, a mechanic, a plumber, etc. it is not eligible for Kafalat.
If it is a craft, such as a carpenter, a blacksmith, a shoemaker, etc. then it is eligible for Kafalat.
If your work is a service such as a gas station, a laundry, a supermarket, a beauty parlour, a car rental agency, or a learning institute, it is not eligible for Kafalat.

Truck NO
Taxi plate NO
Land or Office NO
Tractor to rent out NO
Tractor to use in my own project YES


Kafalat covers costs which will enable the project to start operations and generate cash. These costs usually occur during the last phases of the project development, as opposed to construction costs, which occur at the starting phases. However, should the last phases costs necessary for operations be less than the maximum loan amount, part of the construction costs could be financed through the loan guaranteed by Kafalat.

Kafalat deals with all banks operating in Lebanon.

Kafalat does not interfere in the decision making process at the bank, and thus cannot determine the time required for the bank to reach a decision. However, once the application is transferred to Kafalat, the decision will take a maximum of 3 weeks if all documents required are provided.

No. Kafalat analyses your file independently from the Bank.

Kafalat does not help you prepare a business plan. You can either prepare it yourself, hire a professional to help you prepare it, or get help from the Bank. There is no template to be followed.

First of all, Kafalat does not require any collateral, but the bank may do so in certain programmes. In this case, the collateral can be anything that you and the bank agree to, and do not have to be the plot where the project is set up.

Kafalat does not mortgage the project, or anything else, in return of its guarantee.

Kafalat will not own any shares in your project.

No. You may only start executing the part of your project guaranteed by Kafalat, after Kafalat has issued its guarantee. The bank cannot disburse the loan before Kafalat’s letter of guarantee is issued, unless a prior written justification is given by the bank and approved by KAFALAT.

If the file was declined by the bank for non compliance with their policies and procedures, you may apply again at another bank.
If the file was declined by Kafalat for non compliance with Kafalat’s policies and procedures, you may not apply again.

No. A grace period is only provided once for the same project. However, if the purpose of the loan is different, you might be eligible for a new grace period.