Guarantees for Loans to Small and Medium Enterprises


Mon, 05/06/2013 - 15:18 -- admin
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Eligible applicants are SMEs with less than 40 registered employees operating in one of the five subsidized sectors: Industry, Tourism, Agriculture, High Technology and Crafts.

Legal Forms

All types of legal economic entities are eligible for Kafalat Energy Loans.

Special Types of SMEs

Independent Power Producers are companies whose activity is restricted to producing electrical power and selling it to third parties; these companies are classified as industrial and thus are eligible.

Previous Kafalat Beneficiaries

Companies which currently benefit or have already benefited from a Kafalat guarantee in other programmes are eligible to benefit from Kafalat Energy.

Kafalat Energy is independent from other Kafalat products i.e. the limit, duration and grace period are not to be matched or combined with the client’s other Kafalat loans.

SME development phase

Both newly founded and established SMEs are eligible to benefit from Kafalat Energy Loans.

Technical Eligibility

In order to ensure the fund will be used by the most energy beneficial projects, energy savings (Programme A) or renewable energy generation (Programmes B & C) relative to the initial investment will be compared to a benchmark in each technology.

Non Eligible Types of SMEs

In addition to the activities not supported by any of Kafalat’s guarantees, SMEs which are not eligible for Kafalat Energy in particular, are:

  • Energy Consultants
  • Energy Service Companies (ESCO)
  • Energy Contractors

These companies are engineering companies specialized in energy, and prepare packages of energy efficiency measures or renewable energy installations for their clients.

They are not eligible for Kafalat Energy themselves, but their clients might be, should they meet the eligibility criteria. Thus the application should be made in the name of the final beneficiary of the loan i.e. their client.