Presidency of the
Council of Ministers
A startup is a young company that is just beginning to develop. Startups are usual small and initially financed and operated by a handful of founders. These companies offer a product or a service that is not currently being offered elsewhere in the market, or that the founders believe is being offered in an inferior manner.
A startup usually cease to be startup after approximately three years in business or once it is acquired by a larger company, possess more than one office, over five people on the board or if the founders have sold their shares.
The Central Bank of Lebanon implemented Circular 331 with the purpose of incentivizing Lebanese banks to invest equity in:
The local banks receive a seven-year interest-free credit from BDL, which can be invested in treasury bonds with an interest rate of 7%. In return, the bank commits to investing in the knowledge economy. Local banks can invest up to 3% of their capital in start-up support entities, funds or directly into startups. BDL guarantees 75% of the investment, de-risking it by mitigating the potential losses and reducing them to a mere 25%.
To ensure the circular is appropriately used and that it serves its intended purpose, BDL has laid down ground rules for qualifying. The company should be a Lebanese joint-stock company (SAL) with nominal shares; its work should rely on knowledge economy, support creative intellectual skills, and have an enriching impact on the economic and social growth and on job creation in the Lebanese market.
Therefore a startup company in the ICT and Tech sector is highly qualified to benefit from this circular and especially if it is eligible to IDAL incentives.