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 under the Kafalat programme.

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

  • Industry
  • Agriculture
  • Tourism
  • Traditional Crafts
  • High Technology

Loans guaranteed by Kafalat benefit from interest rate subsidy. These subsidies were set up to mitigate the crowding out effect of the high interest rates in Lebanon induced by public sector borrowing. Interest rate subsidies are financed by the Lebanese treasury and administered by the Central Bank of Lebanon.

Kafalat at a glance

Benefits provided for startups
  • Grants
  • Loans
  • Equity Co-Investment
Eligibility criteria Grants: Idea with a business plan, receipts of all expenses (detailed plan on how the money will be used)
Min. Amount $5000
Max. Amount $15000000
Interest Rate Per Year 3% – 16%
Rules & Conditions Grants: http://www.kafalatisme.com.lb/isme-grants
Loans: http://kafalat.com.lb/how-apply
Equity co-investment: http://www.kafalatisme.com.lb/isme-grants
Other Comments Loan details:
Kafalat Basic – up to LBP 300 Million
Kafalat Innovative – up to LBP 300 Million
Kafalat Start-ups and Innovation – up to LBP 650 Million
Kafalat Trees – up to LBP 480 Million
Kafalat Small Farmers – up to LBP 65 Million
Kafalat Energy – from LBP 600 Million to LBP 1,320 Million