Guarantees for Loans to Small and Medium Enterprises


Tue, 05/07/2013 - 11:01 -- admin
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Eligible applicants are start-up SMEs which:

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

Criteria for Start ups

Priority will be given to start-ups and SMEs 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.

P.S: The fact that a start-up is undergoing mentoring and guidance from reliable, recognized entrepreneurs such as provided in the Bader or Berytech programmes will weigh in favour of the investment that is being requested.

Legal Forms

Kafalat Innovative 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.

SME Development Phase

The business venture should be a start-up, or existing for a maximum of two years prior to the application date.

Not Eligible Activities

SMEs aiming to finance the following are not eligible for a Kafalat Innovative 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.