In addition to the program of the Saudi Arabian Monetary Authority announced on March 14, 2020 AD, whose value in its current stage about (50) billion riyals. It aims to enable the financial sector to support the growth of the private sector within the framework of supporting the state's efforts "may God support it" in combating Corona virus ( COVID-19) and mitigating its expected financial and economic impacts on the private sector and enabling it to play its role in promoting economic growth, especially on the MSME sector.
SAMA in cooperation with the Small and Medium Enterprises Financing Guarantee Program (Kafalah), launched the Guaranteed Financing Program, by guaranteeing 95% of the granted financing value according to the approved mechanisms within the Kafala program, with the aim of providing additional support and enhancing the creditworthiness of micro-enterprises. This is to overcome the challenges of financing these enterprises, which reduces the impact of the decline in cash flows, and makes it easier for them to serve their customers and pay the salaries and dues of their employees.
The guaranteed financing program can be taken advantage of through banks and financing companies subject to the supervision of SAMA. All micro, small and medium enterprises can also benefit from the guaranteed financing program for various types of facilities currently provided to micro-enterprises. Small, small and medium-sized enterprises, including but not limited to (financing employees 'salaries, financing establishments' bills, financing working capital, refinancing existing facilities). Among the most prominent features of the guaranteed financing program are; Exempting establishments from any administrative fees and from providing any in-kind guarantees, SAMA bears the guarantee fees in favor of the guarantee program instead of the customer. Not more than (4%) of the annual financing value.