Saudi Arabias SME Bank Supports Businesses With $64m Crowd-funding Finance Support

The Small and Medium Enterprises (SME) Bank announced the launch of the second phase of the “agency model,” aimed at supporting and empowering micro, small, and medium enterprises through tailored financial solutions.

The initiative is being implemented in partnership with debt-based crowdfunding platforms of Manafa, Lendo, and Tameed, with a financing target of SR240m ($64m) for 2025.

Saudi SME funding

The agency model operates through debt-based crowdfunding, where funds are allocated by SME Bank, and the platform manages the portfolio on its behalf under specific conditions.

The funds are then allocated to directly finance micro, small, and medium enterprises, offering flexible financing terms with repayment periods of up to 12 months.

The program provides financing amounts ranging from a minimum of SR50,000 ($13,300) to a maximum of SR1m ($267,000), depending on the needs of the benefiting enterprises and credit assessment.

Additionally, it includes a grace period of up to three months for certain products, granting entrepreneurs greater flexibility in managing their financial obligations.

The first phase of the program achieved significant success, with more than SR88m ($23.5m) in financing provided to numerous micro, small, and medium enterprises across various sectors, contributing to enhancing financial sustainability and stimulating economic growth.

Building on this success, the second phase aims to expand the pool of beneficiaries and accelerate access to financing in a more integrated and digital-driven manner.

It will enable startups and e-commerce businesses to obtain financing more easily, further supporting their growth and development in Saudi Arabia.

The bank also encouraged entrepreneurs and SME owners to apply and take advantage of the available financing opportunities through the “financing gateway.”

The bank emphasised that this phase will contribute to the continued support of projects with sustainable economic impact, enhance opportunities for expansion and growth, and enable enterprises to achieve their operational and investment goals with greater flexibility.

The SME Bank was established under the resolution of the Saudi Cabinet, No. 376, dated 4/7/1442 AH (corresponding to 16/2/2021) as one of the developmental funds and banks under the National Development Fund.

The bank aims to increase financing for the SME sector, bridge the financing gap, enhance the contributions of financial institutions in providing innovative financial solutions, and achieve financial stability for this vital sector, positioning it as a key pillar of economic development in the Kingdom of Saudi Arabia and an enabler of Vision 2030.