Guarantees for Loans to Small and Medium Enterprises

Are you eligible for a Kafalat Innovative loan guarantee?

Fri, 04/12/2013 - 14:34 -- admin

Are you eligible for a Kafalat Innovative loan guarantee?

The applying SME must fulfill all the following conditions:
   • The loan is used in one of the following economic sectors: Industry, Agriculture,
     Tourism, Traditional Crafts, or High Technology;

   • The SME shall provide evidence in the form of a business plan, that it has the ability to repay the loan;

   • The SME must not be engaged in any of the activities excluded under the scheme as stated below

   • The start up must be a bona fide new business venture which has not conducted any commercial operation in the past;

   • The start up should be a Lebanese registered entity employing in majority a Lebanese labour force; with the majority shareholder; or in the case of a sole trader or partnership, the individual or main partner should be a over 18 years of age;

   • No default under any credit facility should have occurred during the 2 years prior to the date of loan request for any of the partners associated to the start up;


Preferably, the SME also

   • Has the potential to export;

   • Has potential to generate significant value added and/or use local raw materials and/or introduce new and innovative technologies;

   • Operates in rural areas promoting basic infrastructure and financial support;

   • Works 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 the Berytech programmes will weigh in favor of the investment that is being requested