Medium Enterprises Financing Guarantee Programs

The objective of industrial finance programs (Kafala, Lease finance):

  1. Assisting small and medium-sized enterprises to establish their economic projects, expand their existing projects or increase their productivity, thereby increasing the income of these enterprises and increasing employment opportunities and employment in the national economy.
  2. Encouraging banks and Lease finance companies to provide the necessary financing for these projects based on their economic feasibility and cash flows and under Coverage of guaranteeing the financing risks of the company.

Program Advantages:

  1. Covering of financing or leasing risks for the industrial and service sectors.
  2. Covering up to 70% of the outstanding balance of the loan or lease finance upon default and the interest of six months following the default.
  3. The possibility of granting a grace period in line with the purpose of the loan and the specificity of the project.
  4. Possibility to finance the purchase of fixed assets or financing of working capital or both.
  5. The possibility of granting a limit of a revolving loan, with the possibility of re-withdrawal of the amounts paid and within the limit which is originally pre-approved (within the program of industrial finance and Kafala).

Conditions:

  1. Maximum limit of the value of the loan or lease (1) million dinars. (Loans above this amount can be accepted under the partial guarantee percentage) so that the secured amount does not exceed 700 thousand JD at any time .
  2. Project which is intended to be financed by an institution or company operating in Jordan and seeking profit and is wholly owned by the private sector, and number of employees is to be (250-5) workers.
  3. The repayment period is from (3 - 8) years including the grace period.
  4. The borrower must contribute at least 25% of the cost of the financed project.
  5. Excluded Sectors from this program which are operating in the agricultural sector and trade, including Importing  finished materials for  resell or retail purposes, Financial Brokers, or anything against law or not in accordance with the rules and doesn’t go-with  or against well-known lending basics or ethics .
  6. Program is subject to the terms and conditions of the agreement signed with banks and financial institutions.
Medium Enterprises Financing Guarantee Loans Programs
Max.Loan Amount
(JD)
Max.
Payment Period
(Month)
Guarantee Percentage
(%)
Industrial Loan Guarantees  (EJADA)
1,000,000
96
70%
Leasing Guarantees (EJADA)
1,000,000
96
70%
"Kafala" Program – Islamic Financing
1,000,000
96
70%

To Apply, please click here.

Programs Objectives:

Encouraging the beneficiaries of the SME sector registered in Jordan and individuals to obtain a system of renewable energy sources, thus reducing the burden of energy bills on the beneficiary and the government, helping beneficiaries to assess their energy needs, and improving the efficiency of beneficiaries of this service, in a way to cover their finance needs from Banks & Financial institutions.

Program Advantages:

  • The program is subject to the terms and conditions of the agreement signed with banks and financial institutions and the agreement signed with the Renewable Energy Fund.
  • Financing ratio up to 100% of the total cost of the energy saving project.
  • Guarantee Percentage of 70% of the of the loan value.
  • Interest service is to be provided by The Energy Fund and according to the agreed rate between the Bank and the Fund.

Program Parameters & Standards:

** With regards to the power generation system, the approval of the electricity company must be provided within the following funding limits:

Small and medium-sized companies:

  • Maximum funding of 250 thousand JD for a period not exceeding 60 months
  • The availability of feasibility study approved and certified by The Energy Fund and a Price offer Letter for the installation of renewable energy system from the supplier approved by the Fund for beneficiaries.

Individuals (Home electricity Generation Systems):

  • Maximum funding of 3000 JD for a period not exceeding 60 months.
  • The availability of title deed to the property by the beneficiary.

Individuals (solar heater):

  • Maximum funding of 500 JD for a period not exceeding 36 months.
  • The availability of title deed to the property or lease contract by the beneficiary and a review of the Fund and  price offer for the solar heater.
  • Electricity company approval is not required for this segment.
Medium Enterprises Financing Guarantee Loans Programs
Max.Loan Amount
(JD)
Max.
Payment Period
(Month)
Guarantee Percentage
(%)
Renewable Energy Program
500 - 350,000
36 - 60
70%

To Apply, please click here.

Definition:

Startups projects are projects which are newly established and registered officially in all economic sectors except the commercial & Trading sector, who started to exercise their activity for a period not exceeding five years .

Borrower Requirements & Criteria to be qualified for this Program:

  • The owner of the project establishes his project or activity for the first time and / or an extension or a branch of the existing activity with a new fresh Trade license in a new location.
  • The borrower must be at least 22 years of age.
  • The borrower should have an appropriate practical experience and / or professional qualification required.
  • No signs of negative credit record history for the project owner.

Project Credit Requirements:

  • The existence of a Commercial registration, a profession license, a title deed or a Rent Contract.
  • Customer contribution by not less than 20%.
  • Availability of a simplified feasibility study or Expected cash flow forecasted over the expected finance duration of the requested Loan demonstrating & Proofing the feasibility of the project.
  • No existing past dues on the subject project.
  • Project activity should be among the acceptable activities within the program.

Priorities& Preference for granting security Guarantee:

  • Entrepreneurship and innovative projects.
  • Projects outside the capital Amman.
  • Projects managed or owned by ladies.
  • Projects submitted by young people between the ages of 22 and 35 years.

Program Parameters & Standards:

  • Maximum limit of the loan is 250 Thousand Jordanian dinars (Loans above this amount can be accepted under the partial guarantee percentage).
  • Loan Purpose: to finance working capital or to purchase fixed assets.
  • Loan Repayment period: shall not exceed 8 years including the grace period and in case of working Capital Finance it should not exceed 24 months .
  • Grace period: Should not exceed 1 year at Maximum in case of financing fixed assets and if the project requirement justify this grace period within the expected cash flow.
  • Guarantee percentage up to 85%,
  • The Outstanding balance is eligible for payment under JLGC Guarantee after six months from the date of the last installment being paid by the borrower.
  • The project shall not exceed five years from the date of registration.

Acceptable Economic Sectors & Activities:

  • Industrial and agricultural projects (non-traditional agriculture) and industrial services & Services including Handicraft projects and simple professional works.
  • Other service projects such as information technology and related activities.
  • Tourism sector including hotel and restaurant services.
  • Education sector related to nurseries, kindergartens and private schools.
  • Trade projects based on the support and marketing of the local industry which their expected cash flow can be projected.
Medium Enterprises Financing Guarantee Loans Programs
Max.Loan Amount
(JD)
Max.
Payment Period
(Month)
Guarantee Percentage
(%)
Startups Guarantee program
250,000
60
85%

To Apply, please click here.