Riyadh, March 8, 2025 – The Small and Medium Enterprises (SME) Bank has announced the launch of the second phase of the “agency model” initiative, designed to support and empower micro, small, and medium enterprises (MSMEs) by providing tailored financial solutions. This initiative is part of the bank’s broader strategy to enhance financial inclusion, promote economic growth, and strengthen the entrepreneurial ecosystem in the Kingdom of Saudi Arabia.
The second phase of the program is being implemented in partnership with leading debt-based crowdfunding platforms, including Manafa, Lendo, and Tameed. Through these platforms, SME Bank has allocated a financing target of SAR 240 million for 2025, aiming to provide businesses with accessible and flexible funding options that align with their operational needs and growth aspirations.
Under the agency model, SME Bank allocates funds to the partnering crowdfunding platforms, which then manage the portfolio on its behalf in accordance with specific conditions. These funds are directed towards financing MSMEs, offering them structured financing solutions with repayment periods of up to 12 months. The program provides funding amounts ranging from a minimum of SAR 50,000 to a maximum of SAR 1 million, depending on the financial needs and credit assessments of the enterprises. Additionally, certain financing products within the program offer a grace period of up to three months, allowing entrepreneurs greater flexibility in managing their financial obligations.
The initial phase of the program achieved remarkable success, with over SAR 88 million in financing extended to numerous MSMEs across diverse sectors. This funding played a crucial role in enhancing financial sustainability, fostering business expansion, and contributing to overall economic growth. Building on this success, the second phase aims to expand the number of beneficiaries and improve access to financing by leveraging advanced digital tools. A key focus of this phase is to facilitate financing for startups and e-commerce businesses, ensuring they have the necessary capital to scale their operations and drive innovation in the market.
Entrepreneurs and SME owners are encouraged to apply for financing through the “financing gateway,” an online platform designed to streamline the application process and ensure quick and efficient access to funds. SME Bank emphasized that this phase will not only enhance the sustainability of small businesses but also contribute to the Kingdom’s broader economic diversification goals. By supporting enterprises with sustainable economic impact, the program aims to create new expansion opportunities and enable businesses to achieve their operational and investment objectives with greater financial stability.
The SME Bank was established under Saudi Cabinet Resolution No. 376, dated 4/7/1442 AH (February 16, 2021), as one of the developmental funds and banks operating under the National Development Fund. The bank plays a pivotal role in bridging the financing gap, enhancing the contributions of financial institutions in providing innovative financial solutions, and fostering a robust SME sector. By strengthening the financial ecosystem for small businesses, SME Bank continues to position MSMEs as a key pillar of economic development in Saudi Arabia and a driving force behind the realization of Vision 2030.