What is available for Lebanese Start-ups and SMEs?

Lebanese Start-up SME

Despite the tough economic conditions and the different challenges facing the SMEs & Start-ups; There is still several financial tools and solutions formulated in order to support the sector and help businesses start, grow or even surpass the ongoing crisis.

Financial instruments are no longer limited to bank loans, currently many schemes are available including Venture Capital, Angel Investors, Crowdfunding, and others.

Micro-credits

Micro-credits institutions in Lebanon provide small loans to startup, employees and entrepreneurs. Loans amount start from $1,000 and could reach a maximum of $50,000.

Institutions: Al Majmouaa, Vitas,Emkan, Tamkeen, and others.

Kafalat Loans

Kafalat supports Start-ups and SMEs to get commercial bank funding by providing guarantees for loans granted by commercial banks.

Eligible sectors: industry, agriculture, tourism, high technology, traditional crafts.

Loan amount is up to LBP 600,000,000, with an Interest Rate is for 40% 1-year Treasury Bills + 3% with a subsidy up to 4.5%, plus a commission paid to Kafalat for 2.5% yearly of the outstanding guarantee amount.

BDL Subsidized Loans

Subsidized loans focuses on the productive sectors, aiming to stimulate investments through Mid to Long term up to LBP 15 Billion, at an interest rates of 2Y Treasury Bills+1% with a subsidy of 4.5%.

Eligible sectors: Industry, Tourism, Agriculture, Craft industry and Technology

Equity Financing: Angel Investors, Venture Capital, Private Equity

The Central Bank circular 331, aims to give a boost to local startups, giving them a greater incentive to set up in Lebanon, and keeping their talent and money at home. The $400 million in this new initiative is 75% guaranteed by the BDL for local banks, equity investment accelerators, incubators, funds and startups.

Applicant companies must be Lebanese joint-stock company (SAL) and should rely on knowledge economy. The period of Investment does not exceed 7 years, with a participation not exceeding 80% in the equity of the company.

Available Venture funds: Berytech Fund, MEVP, LEAP, Y Venture Partners, and others.

Crowdfunding

Crowdfunding is a new financial trend in Lebanon. Crowdfunders play a channeling role between entrepreneurs and funders, this entails many individuals to network and pool their money, in the aim of supporting other people’s or organization’s initiatives.

Several crowdfunding platforms are available from which “Zoomal” and “Aflamnah”.