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.

Criteria for existing SMEs and Start-ups

Priority will be given to start-ups and SMEs having the following criteria:

  • Potential to generate significant value added for the business and the Lebanese economy.
  • No default under any credit facility should have occurred for 3-years preceeding the date of the loan request.

Previous Kafalat Beneficiaries

Loan guarantee extensions and increases cannot benefit from an additional grace period. Kafalat Basic loan guarantees have a maximum duration of 7 years, starting from the date of the initial guarantee.

SME Development Phase                 

The business venture may be an already existing one or a start-up.

Non Eligible Activities

SMEs aiming to finance the following are not eligible for a Kafalat Basic Loan:

  • Repayment of existing debts.
  • Payment of business expenses incurred prior to the issuance of the guarantee.
  • Manufacturing or selling arms, weapons, or ammunitions.
  • Activities that contribute to the violation of international labour law and human rights conventions or Lebanese Labour laws.
  • Any activity defined as illegal, environmentally hazardous or dangerous for human health.
  • All activities revolving around the gambling industry.
  • Activities involved in currency speculation.
  • Security investments or other types of financial assets.
  • Activities related to the real estate sector.