The Small and Medium Enterprises Bank Launches the Second Phase of the Agency Model with a Target of SAR 240 Million for 2025

The Small and Medium Enterprises Bank (SME Bank) has 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. This initiative is being implemented in partnership with debt-based crowdfunding platforms: Manafa, Lendo, and Tameed, with a financing target of SAR 240 million for 2025.

 

 Agency Model operates through a debt-based crowdfunding model, where funds are allocated by SME Bank, and the platform manages the portfolio on its behalf under specific conditions. These 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 SAR 50,000 to a maximum of SAR 1 million, 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 over SAR 88 million in financing provided to numerous micro, small, and medium enterprises across various sectors. This contributed 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.

 

 The bank also encouraged entrepreneurs and SME owners to apply and take advantage of the available financing opportunities through the Financing Gateway. It emphasized 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.

 

 It is worth noting that the Small and Medium Enterprises Bank (SME Bank) was established under the resolution of the Saudi Council of Ministers, 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.