Guarantees for Loans to Small and Medium Enterprises

What is Kafalat

Kafalat is a Lebanese financial company with a public concern that assists small and medium sized enterprises (SMEs) to access commercial bank funding. Kafalat helps SMEs by providing loan guarantees based on business plans / feasibility studies that show the viability of the proposed business activity.
It processes guarantee applications for loans that are to be provided by Lebanese banks to SMEs operating throughout Lebanon.

Kafalat targets SMEs and innovative start ups that belong to one of the following economic sectors:

English

Eligibility

Thu, 04/11/2013 - 10:30 -- admin

Eligibility

Eligible applicants are SMEs with less than 40 registered employees operating in one of the five subsidized sectors: Industry, Tourism, Agriculture, High Technologies and Crafts.

Legal Forms

All types of legal economic entities are eligible for Kafalat Basic Loans. The borrower may be an individual, a sole proprietorship, a simple partnership, a limited liability company, a joint stock company, a cooperative or an NGO.

The business activity has to take place and be registered as an entity in Lebanon.

English

Caractéristiques du prêt

Thu, 04/04/2013 - 16:54 -- admin

Caractéristiques du prêt

Le montant du prêt garanti par Kafalat Basic est entre quatre millions de Livres Libanaises au minimum et 300 millions de Livres Libanaises au maximum.

Le prêt doit être remboursé dans un délai maximal de sept ans. Les nouveaux prêts garantis comprennent une période de grâce entre six et 12 mois, en fonction des recettes prévues du projet. Durant la période de grâce, l’emprunteur ne rembourse aucun payement, ni en principal ni en intérêts.

Français

Characteristics of the loan

Thu, 04/04/2013 - 16:47 -- admin

Characteristics of the Loan

Kafalat Basic guarantees loans with amounts varying between a minimum of LBP four million and a maximum of LBP 300 million.

The loan has to be repaid within a maximum of 7 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.

English

Can I start executing my project when the bank approves the loan?

Mon, 03/18/2013 - 10:59 -- admin
English

No. You may only start executing the part of your project guaranteed by Kafalat, after Kafalat has issued its guarantee. The bank cannot disburse the loan before Kafalat’s letter of guarantee is issued, unless a prior written justification is given by the bank and approved by KAFALAT.

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