Purpose of the loan

Kafalat Innovative guarantee programme was set up to specifically support innovative start-ups. Innovative start-ups are those who demonstrate the potential to create significant added value through innovation. Accordingly, innovation is defined as at least one of the following activity:

1. Development of a new product or service,
2. Development of a new production or business process,
3. Development of new uses for existing products,
4. Development of new types or modes of distribution or sales channels.

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

1. Purchase of equipment and other capital expenditures. These can be new or used.
2. Plant renovation, expansion, etc.
3. Purchase of raw materials, spare parts, working capital, and consulting fees.
4. Marketing and promotion activities, such as participation in show rooms, foreign exhibitions, etc.
5. Research and development.
6. 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.