Faro Lebanon was launched by the Chamber of Commerce, Industry, and Agriculture of Beirut and Mount Lebanon. It is a fund dedicated to supporting innovative small and medium-sized enterprises (SMEs). The main goal of FARO is to support Lebanese entrepreneurs through providing financial support for their projects and enhancing competitiveness and openness to global markets.
The word FARO stands for “Fond d’Amorçage, de Réalisation et d’Orientation”. FARO Lebanon was established in line with the similar model of FARO France, under the framework of the “Union for the Mediterranean”. It is monitored by a Board of Trustees constituted of representatives from public and private institutions involved in providing support to small and medium-sized enterprises.
To be able to apply for a FARO loan, you must be planning to introduce an innovative product or service, or planning to introduce an innovative idea to deliver a product, service, or business model. Companies, individuals and associations are all eligible to receive this loan. But the person or party benefiting from this special loan should be working with at least one European or Mediterranean partner. This partner could be a client, supplier, or advisor.
The main features of the FARO loan:
- Maximum Amount: This loan is to support small and medium-sized enterprises, and thus the maximum loan amount is 20,000 USD.
- Interest Rate: The main benefit of the FARO loan is its extremely low interest rate which is at a maximum of 1%.
- Loan Period: The repayment phase could be stretched up to 3 years.
- Grace Period: You could benefit from a grace period up to 1 year, before the start of your repayment schedule.
Let’s take an example: You apply for a FARO loan with an amount of 20,000 USD to be paid back throughout the next 3 years, but without a grace period. At a 1% interest rate, you would end up paying a monthly settlement of 564 USD for 36 months. This means that you will only pay a total interest of 310 USD throughout the loan period, of course in addition to the loan value of 20,000 USD.
FARO Lebanon helps your business beyond the loan amount. The CCIB could help you through preparing bankable financial statements and drawing your business plans. Technical support can be offered as well, in order to meet your business needs.
Make sure you visit the FARO page on bnooki.com, where you can ask questions and apply for the loan online via this link: bnooki.com/faro