SME Bank Unveils Second Phase Of Agency Model To Support Micro And Small Enterprises In 2025

The SME Bank has introduced the second phase of its "agency model" to bolster micro, small, and medium enterprises with customised financial solutions. This initiative partners with crowdfunding platforms Manafa, Lendo, and Tameed, aiming for SAR 240 million in financing by 2025. The model uses debt-based crowdfunding, where SME Bank allocates funds and the platform manages them under specific conditions.

Funds from this program are directed to finance micro, small, and medium enterprises directly. They offer flexible terms with repayment periods extending up to 12 months. Financing amounts range from SAR 50,000 to SAR 1 million based on enterprise needs and credit assessments. Some products also include a grace period of up to three months, providing entrepreneurs more flexibility in managing finances.

The first phase of this program was notably successful, providing over SAR 88 million in financing across various sectors. This contributed significantly to financial sustainability and economic growth. Building on this success, the second phase aims to broaden beneficiary access and accelerate financing through digital means.

This expansion will particularly benefit startups and e-commerce businesses by simplifying their access to necessary funds. The bank is encouraging entrepreneurs and SME owners to apply via the "financing gateway" to seize these opportunities. This phase is expected to support projects with sustainable economic impacts while enhancing growth opportunities.

The SME Bank was established under Saudi Council of Ministers Resolution No. 376 on 4/7/1442 AH (16/2/2021). It operates as part of the National Development Fund's developmental banks. The bank's mission includes increasing SME sector financing, bridging gaps, enhancing financial institutions' contributions with innovative solutions, and achieving financial stability.

This initiative positions SMEs as a crucial pillar of Saudi Arabia's economic development and supports Vision 2030 goals. By enabling enterprises to achieve operational and investment objectives flexibly, the bank plays a vital role in fostering economic growth within the Kingdom.

With inputs from SPA