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B5 Additional Financing
Introducing the B5 Additional Financing

The B5 Additional Financing (AF) builds on the success of the Parent B5 Project. The additional US$ 3 Million fund financed by the Lebanon Financing Facility’s (LFF) is designed to provide liquidity to Microfinance Institutions (MFIs) and support their path to sustainability. This will enable them to extend new loans to MSMEs all over the Lebanese Territories, ensuring low-income households and entrepreneurs continue to access much needed business loans.

$3 Million

additional fund

to provide on-lending grants to Microfinance Institutions

Objective

The primary objective of the Additional Financing program is to ensure the sustainability and continuity of Lebanon’s microfinance sector, thereby fostering financial inclusion. By offering grants to MFIs for on-lending purposes, this additional fund helps:

Provide loans to micro and small businesses.

Stabilize MFI operations.

Enhance financial services for low-income entrepreneurs, while focusing on women and youth.

AF Components
Component 2.2

US$2.65 Million provision of grants to MFIs to help them offer loan products accessible to MSMEs.

Component 2.3

US$50K provision of grant to provide Technical Assistance to a microfinance NGO to help strengthen its strategy, controls, and business plan.

Eligibility Criteria

Borrowers:

  • Targeted beneficiaries: Eligible MSMEs with less than 20 registered employees (typical MFI clientele) with a focus on women and youth.
  • Types of Businesses: Registered and non-registered businesses, with a focus on self-employed individuals.
  • Sectors: Open to all economic sectors, prioritizing underserved communities.
  • Targeted Areas: All over the Lebanese territories.

Loans:

  • Currency: Loans disbursed in Fresh USD and repaid in Fresh USD.
  • Loan Sizes: To be determined by MFIs based on business requirements, with a cap of US$10,000 and an average of approximately US$2,000.
  • Loan Maturity: 12 months on average, with flexibility based on borrower needs and market conditions.
  • Interest Rates: Set by MFIs, tailored to market conditions and risk profiles.
  • Total Loans Expected: Approximately 1,350 loans in the first year and 4,000 loans over three years.
How to Benefit

To apply for a loan from one of the 3 selected MFIs:

This initiative not only boosts economic activity but also enhances financial inclusion for women, youth, and underserved communities. Together, we are rebuilding opportunities for sustainable growth and stability in Lebanon.

Reach out to us

For more details or to get started contact one of the three MFIs above. For all other inquiries, please reach out to Kafalat

The B5 Fund is a $25 million Fund, financed by the Lebanese Financing facility (LFF), a multi-donor trust fund established in December 2020, and managed by the World Bank. The Fund aims to pool grant resources and strengthen the coherence and coordination of financing in support of the immediate socio-economic recovery of vulnerable people and businesses impacted by the Port of Beirut explosion of August 4, 2020.

CONTACT US

For additional information, queries or complaints, please contact Mr. Khalil Attieh, Mr. Jeoffrey Karaa or Mr. Nadim Khreiss

by phone at 01/340992 or 70/182926 or by email at b5@Kafalatb5.com and b5@kafalat.com.lb.

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