Guarantees for Loans to Small and Medium Enterprises

What does Kafalat do?

Mon, 05/13/2013 - 12:01 -- admin
English

Kafalat guarantees loans that are given by banks operating in Lebanon to finance projects in one of the five subsidized sectors: Industry, Agriculture, Tourism, High Technology and Traditional Crafts. Kafalat does NOT grant loans.

If my Work is one of the following, is it eligible for Kafalat?

Mon, 05/13/2013 - 12:00 -- admin
English

If your work is a profession such as a barber, a dentist, a mechanic, a plumber, etc. it is not eligible for Kafalat.
If it is a craft, such as a carpenter, a blacksmith, a shoemaker, etc. then it is eligible for Kafalat.
If your work is a service such as a gas station, a laundry, a supermarket, a beauty parlour, a car rental agency, or a learning institute, it is not eligible for Kafalat.

Does Kafalat cover construction costs?

Mon, 05/13/2013 - 11:56 -- admin
English

Kafalat covers costs which will enable the project to start operations and generate cash. These costs usually occur during the last phases of the project development, as opposed to construction costs, which occur at the starting phases. However, should the last phases costs necessary for operations be less than the maximum loan amount, part of the construction costs could be financed through the loan guaranteed by Kafalat.

How long does the decision take?

Mon, 05/13/2013 - 11:55 -- admin
English

Kafalat does not interfere in the decision making process at the bank, and thus cannot determine the time required for the bank to reach a decision. However, once the application is transferred to Kafalat, the decision will take a maximum of 3 weeks if all documents required are provided.

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