Kafalat Innovative currently guarantees 90% of the value of the loan granted by the bank and 90% of the accrued interest during the grace period + 3 months. (Examples). The value of the guarantee diminishes proportionally to the value of the outstanding loan as calculated in the repayment schedule.
Currently the maximum loan amount for a Kafalat Innovative guarantee is 300 million Lebanese Pounds. The minimum amount is 4 million Lebanese Pounds.
The size of the loan requested has to reflect the needs of the project to be financed. The value of the Kafalat approved loan will depend on the financial requirements of the project as justified in the business plan / feasibility study.
The Kafalat Innovative guarantee was set up to specifically support innovative start ups. Innovative start ups are those who demonstrate the potential to create significant commercial added value through innovation. Accordingly, innovation is defined as at least one of the following activity:
Cost of Kafalat Plus loan guarantee:
• The borrower must commit to making a minimum contribution of 20% in personal equity, either in kind (subject to KAFALAT’s approval) or in cash towards the cost of the project;
The following activities will not qualify for loan guarantees under the guarantee scheme:
• Manufacturing or selling arms, weapon, or munitions;
• Purchase of raw materials, spare parts, working capital, and consulting fees;
Kafalat Plus loan guarantees are given to incorporated SMEs only (ie: SAL, SARL, COOPERATIVE... )
The applying SME must fulfill all the following conditions:
• The guaranteed loan is used for business development: to establish a viable
new production capacity, or to sustain current production and employment;
• The loan is used in one of the following economic sectors: Industry, Agriculture,
Tourism, Tradition Crafts, or High Technology;
