Eligible applicants are start-up SMEs which:
Priority will be given to start-ups and SMEs having the following criteria:
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:
Kafalat Innovative guarantees loans with amounts varying between a minimum of LBP four million and a maximum of LBP 300 million, which can only be granted in Lebanese Pounds.
The loan has to be repaid within a maximum of 5 years. New loan guarantees include a grace period between 6 and 12 months depending upon expected business revenues. During the grace period, the borrower makes no repayment, neither in principal nor in interest.
Kafalat Innovative Programme is the result of a partnership between the European Union and the Ministry of Economy and Trade of Lebanon (MoET) to finance innovative ideas and businesses.
The borrower has first to approach a bank to present the project to be financed by the loan.
Once the bank has accepted the loan application, it submits this application to Kafalat. In addition to bank loan documents, Kafalat requires a completed loan guarantee application form as well as its own set of supporting documents.
Kafalat Start-ups and Innovation loans may be granted in either Lebanese Pounds or US Dollars.
Loans taken in Lebanese Pounds (LBP) will be charged the following interest rate:
Interest rate = 1 year Lebanese Treasury Bills Yield (TBY's) + 3%
Loans taken in US Dollars (USD) will be charged the following interest rate:
Eligible applicants are start-up SMEs which:
Kafalat Start-ups and Innovation loan guarantees are only given to SMEs incorporated as a Joint Stock company (Societe Anonyme Libanaise – SAL) registered in Lebanon as a profit making enterprise.
Kafalat Start-ups and Innovation guarantee programme was set up to specifically support start-ups who demonstrate the potential to create significant added value, placing emphasis on the project’s feasibility and viability, and the borrower’s ability to repay rather than on the borrower’s net worth.
Kafalat Start-ups and Innovation guaranteed loans may be used to finance all business related expenditures, including:
