B5 fund Overview

The Building Beirut Businesses Back and Better Fund (B5) Fund is a $25 million grant financed by the Lebanon Financing Facility (LFF), a multi-donor trust fund established in December 2020 and managed by the World Bank to pool and coordinate grants resources from donors in support of the immediate socio-economic recovery of vulnerable people and businesses impacted by the Port of Beirut explosion of August 4, 2020.

The objective of the B5 Fund is to support the recovery of targeted Micro and Small Enterprises (MSEs) damaged by the explosion and sustain the operations of eligible Microfinance Institutions (MFIs). The B5 Fund would also help preserve private sector jobs and reduce business closure and layoffs.

Project components and activities are as follows:

• Component 1 - Grants to MSEs (USD 18.5 Million):  Provision of grants to eligible MSEs impacted by the explosion to support their rehabilitation and recovery. These grants can cover the hard and soft costs (works, equipment, and working capital). Grants to MSEs will be implemented through two approaches: Wholesale Approach through MFIs and Retail Approach through Kafalat following defined selection criteria. Eligible MSEs will be prioritized based on their proximity to the explosion site.
• Component 2 - Grants to MFIs (USD 5 Million): Provision of self-sustainability grants to MFIs to preserve the microfinance sector and its capacity.
• Component 3 - Project Management and Gender Support (USD 1.5 Million): This component will finance project management costs over the project life. It will also support training and capacity building activities to beneficiary women and disabled led or owned MSEs, focusing on financial management and sales. 

About the Lebanon Financing Facility (LFF):

Established in December 2020 in the aftermath of the August 4 Port of Beirut explosion disaster and following the launch of the Reform, Recovery and Reconstruction Framework (3RF), the Lebanon financing Facility (LFF) is a 5 year multi-donor trust fund, managed by the World Bank,  that will pool grant resources and strengthen the coherence and coordination of financing in support of the immediate socio-economic recovery of vulnerable people and businesses impacted by the explosion. To date, the LFF has received contributions and pledges from the governments of Canada, Denmark, France, Germany, Italy and Norway and from the EU. Subject to the commitment of all Lebanese stakeholders to critical reforms, the LFF will build the foundation for medium-term recovery and the sustainable reconstruction of the Port of Beirut and affected neighborhoods. The LFF prioritizes three focus areas of interventions:

1. Socioeconomic and business recovery;
2. Preparing for reform and reconstruction; and
3. Strengthening coordination, monitoring, accountability and oversight of the 3RF.

The LFF will benefit from the World Bank’s high fiduciary standards, through the application of its fiduciary framework for financial management, procurement, and environmental and social safeguards. The LLF will also ensure that programs promote gender equality and community engagement that target women, youth and vulnerable populations. In addition, the Lebanon Financing Facility will hire a Third Party Monitoring Agent to independently verify and confirm that the criteria, selection process, assessment and use of funds are in compliance with the Project Operations Manual.

Project Projected Timeline