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.
Various industrial activities are sponsored by the programme; Transportation, Entertainment and Tourism. Services, Commercial activities. Education, Contracting, Agricultural (refer to List Sector) and Medical.
FGP will be granted only to companies (SMEs) with Sales/Credit turnover of less than SAR 20M.
The above is conditioned by the guarantee amount, which must not exceed 50% of the aggregate overall total finance for the client.
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.
