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News & Events

Kafalat SAL Celebrates the Arab Day for Financial Inclusion

On April 27 of each year, the Arab World celebrates Financial Inclusion. Financial Inclusion is the effort of making available all financial services to various segments of society, especially the... more

Kafalat at Beirut Energy Forum 2015 - From 9 To 11 September

Kafalat SAL will be participating in the International Beirut Energy Forum - 2015, at booth # 21. The Bieurt Energy Forum is an annual meeting event for experts and stakeholders in Renewable Energy... more

Kafalat launches three new programmes

February 28, 2013 - In an event at the Association des Banques au Liban, gathering representatives from all Lebanese banks, and with the participation from Representative of the Delegation of the... more

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Partners

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Partners in Co-operation

Industrial Research InstituteMultilateral Investment Guarantee Agency
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Eligibility

Tue, 05/07/2013 - 11:01 -- admin

Eligibility

Eligible applicants are start-up SMEs which:

  1. Have less than 40 registered employees.
  2. Operate in one of the five subsidized sectors: Industry, Tourism, Agriculture, High Technologies and Crafts.
  3. Are bona fide new business ventures which have not conducted any business operation in the past.

Criteria for Start ups

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

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Purpose of the loan

Tue, 05/07/2013 - 10:56 -- admin

Purpose of the loan

Kafalat Innovative guarantee programme was set up to specifically support innovative start-ups. Innovative start-ups are those who demonstrate the potential to create significant added value through innovation. Accordingly, innovation is defined as at least one of the following activity:

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Characteristics of the Loan

Tue, 05/07/2013 - 10:53 -- admin

Characteristics of the Loan

Kafalat Innovative guarantees loans with amounts varying between a minimum of LBP four millions and a maximum of LBP 300 millions, which can only be granted in Lebanese Pounds.

The loan has to be repaid within a maximum of 5 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.

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Overview

Tue, 05/07/2013 - 10:50 -- admin

Kafalat Innovative Programme Overview

Kafalat Innovative Programme is the result of a partnership between the European Union and the Ministry of Economy and Trade of Lebanon (MoET) to finance innovative ideas and businesses.

This programme is co-financed by the EU and Kafalat SAL and offers loan guarantees to start-up businesses of less than two years for investments in fixed assets and working capital needs. It helps start-ups in developing their business ideas or activities in 5 different sectors:

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Application Flow

Mon, 05/06/2013 - 17:09 -- admin

Application Flow

The borrower has first to approach a bank to present the project to be financed by the loan.

Once the bank has accepted the loan application, it submits this application to Kafalat. In addition to bank loan documents, Kafalat requires a completed loan guarantee application form as well as its own set of supporting documents.

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Cost of the Loan

Mon, 05/06/2013 - 17:07 -- admin

Cost of the Loan

Interest Rates

Kafalat Start-ups and Innovation loans may be granted in either Lebanese Pounds or US Dollars.

Loans taken in Lebanese Pounds (LBP) will be charged the following interest rate:

Interest rate = 40% of the 1 year Lebanese Treasury Bills Yield (TBY's) + 3%

Loans taken in US Dollars (USD) will be charged the following interest rate:

Interest rate = 1 year Libor + 5.5%

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Documents Required

Mon, 05/06/2013 - 17:03 -- admin

Documents Required

Required documents related to the Start-ups:

  1. Identity Card of the partners and the Commercial Register of the company.
  2. Bylaws of the company indicating the borrowing right on behalf of the company.
  3. Recent Central Des Risques report (CDR) from BDL for the partners and the company (report should not be older than three months).
  4. Telephone no.

Required documents related to the project:

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Special Conditions

Mon, 05/06/2013 - 17:01 -- admin

Special Conditions

  • The borrower must commit to making a minimum contribution of 50% in equity, either in kind (subject to Kafalat’s approval) or in cash towards the cost of the project.
  • Loans may only be approved for renovation or extension of premises, machinery and equipment, and working capital.
  • The lending bank is not allowed to require from the borrower any collateral or other guarantees on top of the Kafalat loan guarantee.
English

Eligibility

Mon, 05/06/2013 - 16:58 -- admin

Eligibility

Eligible applicants are start-up SMEs which:

  1. Employ less than 40 registered employees
  2. Operate in one of the five subsidized sectors: Industry, Tourism, Agriculture, High Technologies and Crafts.
  3. Are new business ventures which have not conducted any business operation in the past.

Legal Forms

Kafalat Start-ups and Innovation loan guarantees are only given to SMEs incorporated as a Joint Stock company (Societe Anonyme Libanaise – SAL) registered in Lebanon as a profit making enterprise.

English

Purpose of the loan

Mon, 05/06/2013 - 16:55 -- admin

Purpose of the loan

Kafalat Start-ups and Innovation  guarantee programme was set up to specifically support start-ups who demonstrate the potential to create significant added value, placing emphasis on the project’s feasibility and viability, and the borrower’s ability to repay rather than on the borrower’s net worth.

Kafalat Start-ups and Innovation guaranteed loans may be used to finance all business related expenditures, including:

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kafalat statistics

At 30-06-2017
2 658
active loans in Agriculture
975
active loans in Tourism
2 330
active loans in Industry