Saudi Arabia
You are here:
- Home
- Commercial
- Business Solutions
- Credit Facilities
- Finance Guarantee Program for SME
To login to SABBNET
Finance Guarantee for SME
SABB offers a full range of conventional and Shariah compliant business products and services, to meet the requirement of small, medium and large corporate customers.
The Ministry of Finance along with all Saudi Banks, participated in the initiation of the Finance Guarantee Program (FGP). The Saudi Industrial Development Fund (SIDF) was assigned the role of coordinator for the FGP, to overcome the obstacles of financing small and Medium Enterprises (SMEs).
In the effort of minimizing the risks banks may face in dealing with SMEs, FGP will provide banks through SIDF, with tangible security up to 50% of SME customer financing needs to support this promising business sector.
Moreover, SABB signed the First Guarantee document under Finance Guarantee Program (FGP) for the Small and Medium Enterprises (SMEs) with the Ministry of Finance (MOF). The Guarantee is the first of its kind under the SME Finance Scheme, which has been established by MOF and local banks.
The management of SME Finance Scheme has agreed to issue a Guarantee document in favor of SABB, guaranteeing 50% of the value of finance provided to SME customers.
Useful information about SME Finance Guarantee
Basic objectives of the FGP scheme are as follows
-
Enable SMEs to obtain the necessary finance in line with Shariah principles, to develop and expand their activities and encourage banks to finance the SME business activities.
-
Contribute to the upgrading of local SME competition capabilities and positively reflects on the Saudi economy in view of the job opportunities provided, training and recruitment of Saudi Nationals as well as substitution of improved commodities with local products.
-
Increase the capabilities of financed SME customers to produce innovative and high quality products & services.
-
Enhance the Gross Domestic Product (GDP).
-
Creation of job opportunities.
-
Development of SME business in remote areas.
-
Encouraging banks to deal with the SME business segment.
Sponsored Activities
-
Various industrial activities are sponsored by the programme; Transportation, Entertainment and Tourism. Services, Commercial activities. Education, Contracting, Agricultural (refer to List Sector) and Medical.
Eligibility
FGP will be granted only to companies (SMEs) with Sales/Credit turnover of less than SAR 20M.
Financing Terms
-
Guaranteed Amount: Maximum – SAR1.0M & Minimum - SAR50K.
The above is conditioned by the guarantee amount, which must not exceed 50% of the aggregate overall total finance for the client. -
Any finance under the above FGP will treat clients carrying the same main Certificate of Commercial Registration (CR) as one.
-
Maximum tenure: seven (7) years.
-
FGP finance must be restricted to Sharia’h-compliant products at all times.
Required Documents
-
Copy of the ID.
-
Copy of the commercial registration.
-
Business license.
-
Copy of the business plan.
-
Financials for the past three years (in the case of an existing business).
-
Cash flow projections for the next three years for existing/ new business.
-
The rent contract / owner’s deed.
Note: Client has to bring all the original documents to be sighted by SABB staff and all the documents have to be signed and stamped by the client.
SIDF FGP - Financing Portfolio Diversity
-
Based on Type of Finance
-
Long term fixed assets financing (70 % of the portfolio)
-
Short-term working capital requirements financing (30 % of the
-
ortfolio)
-
Based on Type of Projects
-
Existing Projects (50% of the portfolio)
-
New Projects (50% of the portfolio)
Ready to apply?
Now
Or..
- Visit the nearest Branch...
- Call us..on Toll Free: 800 124 5666 within the Kingdom or +966 (0)1 405-2066 from a mobile/abroad
- Register in SABBNET "Internet Banking Services" and enjoy preferential fees
