Dubai: The Mohammad Bin Rashid Fund for SME (small and medium enterprise) Support, a government initiative launched by Dubai SME on April 12, 2015, has increased the maximum limit of its Seed Capital Loan.
The fund has increased the seed capital loan from Dh500,000 to Dh1 million, while maintaining the Dh5 million maximum limit for the Credit Scheme Loan, which is offered by selected banks in the UAE and guaranteed by the fund for up to 80 per cent.
Backed by the fund’s assets, which exceed Dh600 million, the seed loan is provided directly to entrepreneurs following the completion of the required procedures.
Projects considered by the fund should be based in Dubai and fully owned by an Emirati. The fund will monitor the assisted projects through reviewing its business reportsand field visits and offering advice to entrepreneurs, as and when needed.
The fund’s operating model ensures its sustainability through re-investing the loan settlement to finance new projects. In addition to its financing role, the fund willact as an incubator to innovative projects through Hamdan InnovationIncubator ‘Hi2’.
