Kafalat assists small and medium enterprises (SMEs) to access commercial bank funding by providing them loan guarantees allowing them to benefit from the banks’ loans. Recognized as a financing tool promoting innovation and economic development on the Lebanese financial scene, Kafalat signed a partnership with the European Union and the Ministry of Economy and Trade of Lebanon in order to increase the amount and the size of the loans allocated for the private sector.

Kafalat aims at ensuring guarantees for loans provided by Lebanese banks to SMEs. It is based on feasibility studies and cash flow that show the viability of the proposed business activity and its capacity to repay its loan.

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

• industry
• agriculture
• tourism
• high technology
• traditional crafts

Kafalat guaranteed loans benefit from a subsidized interest rate financed by the Lebanese Treasury and managed by the Central Bank of Lebanon.

Four distinct types of Kafalat loans are currently offered: