Dubai SME allocates Dh20m to a scheme guaranteeing loans for Emirati-owned small businesses – The National

  • Date: 21-May-2020
  • Source: The National
  • Sector:Technology
  • Country:UAE
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Dubai SME allocates Dh20m to a scheme guaranteeing loans for Emirati-owned small businesses – The National

Dubai SME allocates Dh20m to a scheme guaranteeing loans for Emirati-owned small businesses. Scope of the scheme has been extended to include businesses with other stakeholders. Dubai SME, a part of Dubai Economy, allocated Dh20 million to a capital guarantee scheme backing peer-to-peer loans made to small and medium businesses.. The guarantee scheme was first launched by Dubai SME's financial arm, The Mohammed Bin Rashid Fund, and lending platform Beehive to facilitate funding of up to Dh780,000 for businesses that are fully owned by Emiratis.. With the new injection, the scheme has been extended to allow Dubai-based SMEs that are 50 per cent owned and managed by Emiratis to seek funding up to Dh420,000, which will be backed by a 50 per cent capital guarantee.. "The agreement between Mohammed Bin Rashid Fund for SMEs and Beehive extends the benefits of their partnership to a wider SME community and will thereby strengthen the position of Dubai as a competitive hub for business and entrepreneurship, particularly during the present global economic challenges.". The update to the Dubai SME scheme also allows businesses eligible for financing to enjoy a three-months payment holiday at the beginning of their loan term, which will be followed