Kafalat is a Lebanese financial company that guarantees bank loans for small and medium businesses and startups, so that banks will lend to them. The process runs through the banks: a bank forwards a project, Kafalat's team of experts reviews the business plan, and an answer usually comes within about ten days. No collateral or personal guarantee is required once a plan is approved. Its Kafalat Innovant line targets startups under two years old and can guarantee up to 90 percent of a loan, up to 200,000 dollars. Priority sectors are industry, agriculture, tourism, crafts and new technologies. A FEMISE report said Kafalat had supported about 16,500 SME projects since 2000, and it has worked with the Ministry of Economy's SME unit on up to 64 million euros in guarantees.
Kafalat at a glance
- Supported about 16,500 SME projects since 2000
- Kafalat Innovant guarantees up to 90 percent of startup loans
- No collateral or personal guarantee required
- Shareholders include 40 Lebanese companies