Lebanon Businessnews News

Loans to support
food and tourism institutions
The maximum loan amount is LL75 million for seven years
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The Economic and Social Fund for Development (ESFD) is cooperating with the Syndicate of Owners of Restaurants, Cafes, Nightclubs & Pastry Shops in Lebanon, in order to support food and tourism companies through loans. These loans fall within the Fund’s programs to support Small and Medium Enterprises (SMEs) in productive sectors.

“The purpose is to support food and tourism companies to improve their current production conditions, in the light of the food safety campaign by the Ministry of Public Health and the Syndicate’s measures to control food institutions,” said Diana Lahoud, Communication and Administrative Officer at ESFD. “Meeting the required standards by these institutions will lead to a better and cleaner environment,” she said.

Borrowers may obtain a loan, for a maximum amount of LL 75 million ($50,000), through two product types. The first product has a subsidized interest rate at the discretion of the partner bank, while the second product’s interest rate reaches six percent.

“We have freelance advisers across many areas that conduct feasibility studies of each institution’s needs,” said Lahoud. “The partner bank will then decide about the product to offer the borrower,” she said.

Repayment of the loan in both cases may be made in monthly installments for seven years. The grace period may go up by a maximum of one year.

“Eligible borrowers can be institutions that need support to improve their production standards or institutions willing to expand their business,” said Lahoud.

The ESFD’s partner banks include Société Générale de Banque au Liban (SGBL), BLC Bank, Crédit Libanais, First National Bank/Capital Finance Company, and Blom Bank.

Applicants may submit their loan requests at the ESFD’s headquarters at Clemenceau or through business consultants affiliated to the Fund across the country.

The ESFD, whose current program is funded by the European Union, was created in November 2000 with the signature of a financing agreement between the European Commission and the Government through the Council for Development and Reconstruction. It has implemented 62 development projects.
Reported by Leila Rahbani
Date Posted: Oct 26, 2015
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