The SME Loan Guarantee Program (Kafalah) signed 10 memorandums of understanding and cooperation agreements with entities from the government and private sectors, with the aim of facilitating access to financing and providing support for growth, during the Biban 24 forum, organized by the Small and Medium Enterprises General Authority “Monsha’at” under the theme A Global Destination for Opportunities from November 5 to 9 at the Riyadh Front Exhibition and Conference Center.
The agreements were signed by the CEO of Kafalah Program, Homam Hashem. Under them, SME owners will be able to obtain SAR 350 million in additional financing guarantees, strengthening their ability to obtain the financing they need and contributing to achieving their development objectives.
The agreements contribute to providing support and enablement for SMEs to speed up procedures and reduce the time and effort needed to obtain financing. Through these partnerships, SMEs will be able to benefit from loan guarantees in an easier and more digital way.
The CEO of Kafalah Program stated: “These partnerships are a step toward strengthening SMEs’ ability to obtain the financial support they need, by providing financing guarantees that strengthen SME owners’ confidence in achieving their ambitions.”
The Kafalah Program targets promising sectors such as dentistry, tourism, entertainment and culture, technology, export and import, local consulting, and the nonprofit sectors.
The Kafalah Program seeks to support micro, small, and medium enterprises that contribute to strengthening the national economy, by providing financial guarantees that improve enterprises’ chances of obtaining the financing they need, with the aim of reducing the lending risks borne by financing entities, through strategic partnerships and innovative technology tools backed by the program’s knowledge bases. This comes in integration with the SME Bank, which will support the expansion of SME financing.