The Lebanese Parliament has approved the $30M loan provided by the International Bank for Reconstruction and Development (IBRD).
The loan was initially approved on October 2nd, 2014, but Parliament had to reapprove it after 1 month due to the vacancy in the presidential office.
The purpose of the loan agreement between IBRD and the Lebanese government is to support the foundation of numerous SMEs. The loan amount is to be invested under the supervision of Kafalat, which will aim to invest in innovative startups and SMEs.
Under the conditions of this loan, no interest rates are to be paid by the SMEs. Applications submitted to Kafalat will be studied and analyzed before being sent to BDL. The next step is for the Ministry of Finance to transfer the necessary funds to Kafalat to perform its investments in the designated SMEs.
The loan program is composed of two main parts. In the first step, donations are given to SMEs in order to support preparation and development of innovative ideas, strategies, studies, and work plans, in addition to financing approved investments in the qualified institutions. The second part of the program is designed to provide the SMEs the necessary support in establishing project management units and facilitate the administration and execution of projects.