Guarantees for Loans to Small and Medium Enterprises


Mon, 05/06/2013 - 16:58 -- admin
program image: 


Eligible applicants are start-up SMEs which:

  1. Employ less than 40 registered employees
  2. Operate in one of the five subsidized sectors: Industry, Tourism, Agriculture, High Technologies and Crafts.
  3. Are new business ventures which have not conducted any business operation in the past.

Legal Forms

Kafalat Start-ups and Innovation loan guarantees are only given to SMEs incorporated as a Joint Stock company (Societe Anonyme Libanaise – SAL) registered in Lebanon as a profit making enterprise.

Criteria for Start ups

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

  • Potential to export.
  • Potential to generate significant value added and/or introduce new and innovative technologies.
  • Work with new prototypes, products, inventions based on detailed market analysis, financial and technical appraisal.

Not Eligible Activities

SMEs aiming to finance the following are not eligible for a Kafalat Start-ups and Innovation 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.