Kafalat is a Lebanese financial company with a public concern that assists small and medium sized enterprises (SMEs) to access commercial bank funding. Kafalat helps SMEs by providing loan guarantees based on business plans / feasibility studies that show the viability of the proposed business activity.
It processes guarantee applications for loans that are to be provided by Lebanese banks to SMEs operating throughout Lebanon.
Kafalat targets SMEs and innovative start ups that belong to one of the following economic sectors:
• Traditional Crafts
• High Technology
Kafalat guaranteed loans benefit from interest rate subsidies. These subsidies have been set up to mitigate the crowding out effect of the high interest rates in Lebanon that are induced by public sector borrowing. The interest rate subsidies are financed by the Lebanese treasury and administered by the Central Bank of Lebanon.