Guarantees for Loans to Small and Medium Enterprises

Purpose of the loan

Mon, 05/06/2013 - 16:16 -- admin
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Purpose of the loan

Kafalat Plus guarantee programme was specifically set up to support projects demonstrating a potential to create significant added value, placing emphasis on the project’s feasibility and viability.

Kafalat Plus guaranteed loans may be used to finance all business related expenditures, including:

  1. Purchase of equipment and capital goods (these can be new or used).
  2. Plant renovation, expansion, etc…
  3. Purchase of raw material, spare parts.
  4. Working capital.
  5. Up to 15% as cost of professional services related to the company's operations, such as: human capital development and management, business consulting, and advisory services related to performance.
  6. Construction costs. However, the loan should be used exclusively to cover construction costs connected with the workplace of the business.
  7. Marketing and promotion activities, such as participation in show rooms, foreign exhibitions, etc…
  8. Research and development.
  9. Other strategic objectives that serve the interest of SMEs and start ups.

Expenses have to be relevant to the business activity subject of the loan, and expenditures have to occur after approval of the loan guarantee. Project costs incurred prior to the loan guarantee application will not be taken into consideration unless a valid written justification is given by the bank and approved by Kafalat.