If you've always dreamed of launching your own company or taking an existing business to the next level, a Kafalat Plus Loan can provide the missing ingredient: affordable financing. Qualified entrepreneurs can secure up to LBP 600 million toward initiation of a new project, acquisition of equipment, renovation of a workplace, and/or working capital.
Features
- Term loan repaid over seven years (including grace period of six-12 months) via equal monthly installments
- Kafalat Guarantee: 85% of principal
- Interest rate: for LBP 40% of one-year Lebanese Government Treasury Bills plus 3%, minus subsidy provided by Central Bank (subsidy is currently 4.5%); for USD one-year LIBOR plus 5.5%, minus subsidy provided by Central Bank (subsidy is currently 4.5%)
Sectors
- Small- and medium-sized industries, technology, tourism and agriculture enterprises, craftsmen, technicians. Maximum number of employees registered with the National Social Security Fund (NSSF) before obtaining the loan should not exceed 40
Eligibility
- S.A.L. or S.A.R.L. or cooperatives (existing or start-up)
- Possess relevant technical skills and have a minimum of two years of work experience in the field
- Applicant must present a business plan, complete with cash-flow prediction and feasibility study, that demonstrates the viability of the activity to be financed
Special Conditions
- Borrower must commit to minimum contribution of 20% in personal equity (in kind or cash)
- Final debt-to-equity ratio should be at least 70/30
- Collateral: no securities allowed, including personal guarantees
Required Guarantees
- Fire insurance policy covering stock, machinery and premises if judged necessary
- Life insurance if continuity is not secured
Fees
- Yearly commission of 2.5 % of Kafalat Guarantee
- One-time Central Bank filing fee of LBP 100,000