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This type of loan was set up to specifically support start-ups which demonstrate the potential to create significant commercial added value through innovation. Accordingly, innovation is defined as at least one of the following activity: 

• Development of a new product or service to the local market
• Development of a new production or business process
• Development of new uses for existing products
• Development of new types or modes of distribution or sales channels

Loan’s Characteristics

• Maximum amount: LBP 300 million 
• Kafalat plus guarantee: 90% of the loan value granted by the Bank
• Maximum repayment period: 5 years
• Grace period: 6 to 12 months (inclusive loan period)
• Applicable rate:40% of 1 year Treasury bills and 3.3% (subsidized by the Central Bank adding up to 4.5%) 

General Conditions

The loan to be used for business development:

• Exceptionally to purchase raw materials and spare parts
• To purchase equipment and capital goods (whether new or used)
• Other strategic objectives that serve the interest of SME’s and start-ups
• Research and development 

Eligibility

• Beneficiaries: SME’s (SAL, SARL), cooperatives or natural persons
• The enterprise should have 40 employees or less
• Refinancing not allowed
• Real estate finance is excluded
  
• Business activity has to take place in Lebanon
• Loan does not cover value added taxes