The Government has sent a bill for approval from the National Assembly to help small businesses suffering from the negative affects of the coronavirus crisis. The bill details five articles that permit local banks to grant loans to SMEs, and the loans provided to owners of SMES will be in batches, taking into consideration their financial commitments. As a condition to handing over loans, owners of SMEs are not allowed to terminate any of their Kuwaiti workforce and they are obligated to recruit citizens at a specified percentage. The Central Bank of Kuwait is mandated to follow up and supervise the implementation of the bill once approved.
Inserted in the bill, the banks have the authority and discretion to determine the loan amount taking into account the credit status and potential risks of the business. The loan amount is set at a maximum of KD 250,000 for each SME; payable within five years, and there is a grace period provided for the start of installments ranging from two to three years.