Characteristics of the Loan

Kafalat Start-ups and Innovation guarantees loans with amounts varying between a minimum of LBP four million and a maximum of 650 million, and is only granted to Joint Stock Companies (S.A.L.)

The loan has to be repaid within a maximum of 7 years. New loan guarantees include a grace period between 6 and 12 months depending upon the expected business revenue. During the grace period, the borrower makes no repayment, neither in principal nor in interest.

Kafalat Start-ups and Innovation programme guarantees up to 90% of the value of the loan for Innovation companies and 85% for start-ups and a similar percentage of the accrued interest during the grace period + 3 months. Thus, Kafalat Start-ups and Innovation guarantee scheme covers the repayment of 90% or 85% of the outstanding amount to the bank in case of default. However, the borrower is liable for the whole outstanding amount and not only the 10% or 15% unguaranteed.