Corona Program

Program Objectives

The Loan Guarantee Program for facing COVID-19 Pandemic aims to facilitate financing for workers,  craftsmen, owners of individual institutions and small and medium-sized companies, the program enable them to obtain financing on favorable terms and costs to help in covering their financing needs, financing operating expenses and working capital. Likewise, enabling these economic sectors to maintain their operations, pay salaries of the employees, cover various operating expenses, continue their activities, and provide their services during the pandemic and also enable them to resume their activities at natural levels and expand their business during the coming stages.

Target Sectors and Loan Ceiling

1- It is stipulated that the qualified companies benefit from this program must have less than 200 workers and that their total assets or sales be less than 5 million Jordanian dinars. Excluded from this condition are loans / funds granted to private schools to pay the salaries for the teachers and workers regardless the months to fund and the number of workers and its total assets, without the approval of His Excellency the Minister of Education for to cover the salaries of teachers and workers at private schools . 

2- The program covers the funds and loans provided by operating banks at the Kingdom to workers, craftsmen, individual institutions and small and medium companies operating in all governorates at the Kingdom and to the sectors listed below according to the following ceilings for each beneficiary of the program by category and sector.

Ceiling

(JOD)

Sector
20,000 Professions and craftsmen
200,000 Retail trade
600,000 Wholesale trade
500,000 Tourism services excluding hotels
1,000,000 Hotels
500,00 Information Technology
1,000,000 Manufacturing industries, including agricultural activity
1,000,000 Transportation
250,000 Health facilities and services except hospitals
1,000,000 Hospitals
750,000 Education
500,000 Others

 

Program Guarantee

  1. The size of the program is 700 million Jordanian dinars, distributed to all banks operating at the Kingdom.
  2. The program covers 85% of the value of any loan / financing at the default date, plus interest / profit for six months.
  3. Working in the program stops with any bank if the default rate in the guaranteed loans / financing reaches 15% including the net compensation value paid to the bank for the last 12 months.

Program Mechanism

  • Working in the program stops with any bank if the default rate in the guaranteed loans / financing reaches 15% including the net compensation value paid to the bank for the last 12 months.
  • Jordan Loan Guarantee Corp. (JLGC) will manage the program in cooperation with banks.
  • Banks receive requests for financing from clients, then the banks also perform a credit review and take the necessary professional care in evaluating requests according to their operating procedures and credit policies approved by them. They authorize banks to provide funds / loans within the program up to 250 thousand dinars per loan without referring to JLGC to guarantee loans, subject to prior inquiry through the company, while it is required to obtain prior approval from JLGC to guarantee loans for amounts exceeds JD 250 thousands.
  • The validity period of JLGC approval on the guarantee is 3 months, and through delegation is two months, otherwise the grant process conducted and again re-queried according to the rules and before implementation.