Eligibility

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.

Legal Forms

Kafalat Plus loan guarantees are given to incorporated SMEs such as Joint Stock Company (SAL), or Limited Liability Company (SARL), and Cooperatives, registered in Lebanon as a profit making enterprise. The business activity has to take place in Lebanon.

Criteria for existing SMEs and Start-ups

Priority will be given to start-ups and SMEs having the following criteria:

• Potential to use local raw materials and export.
• 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 Plus 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.

Not Eligible Activities

SMEs aiming to finance the following are not eligible for a Kafalat Plus Loan:

• Repayment of existing debts.
• Payment for business expenses incurred prior to the issuance of the guarantee.
• Manufacturing or selling arms, weapon, 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 in the real estate sector.