Saudi Arabia’s Small and Medium Enterprises Bank (SME Bank) has initiated the second phase of its “agency model,” aiming to support micro, small, and medium enterprises (MSMEs) through tailored financial solutions. This phase is implemented in partnership with debt-based crowdfunding platforms Manafa, Lendo, and Tameed, with a financing target of SAR 240 million for 2025.
The agency model allocates funds from SME Bank, managed by the partnering platforms under specific conditions, to directly finance MSMEs. It offers flexible financing terms with repayment periods of up to 12 months. Financing amounts range from SAR 50,000 to SAR 1 million, depending on the enterprises’ needs and credit assessments. Some products include a grace period of up to three months, providing entrepreneurs with greater financial flexibility.
The first phase of the program provided over SAR 88 million in financing to numerous MSMEs across various sectors, 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, facilitating easier financing for startups and e-commerce businesses.
SME Bank encourages entrepreneurs and SME owners to apply for financing opportunities through the “financing gateway,” emphasizing that this phase will continue to support projects with sustainable economic impact, enhance opportunities for expansion and growth, and enable enterprises to achieve their operational and investment goals with greater flexibility.
Established under Saudi Cabinet Resolution No. 376 on February 16, 2021, SME Bank operates 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 Saudi Arabia and an enabler of Vision 2030.
