Self-employment Support Fund for the Southern Provinces of the Kingdom “MOUSSANADA”
Object of Fund:
Financing business creation projects for young entrepreneurs residing in the southern provinces of the Kingdom.
To this end, the Agency for the Promotion of Economic and Social Development in the Southern Provinces set up the “Moussanada” Fund to grant capital stock allocations to entrepreneurs in the southern provinces to co-finance business creation projects with banking institutions.
Eligible beneficiaries
Young entrepreneurs meeting the following conditions:
be a Moroccan national;
live in one of the southern provinces within the agency’s area of intervention;
be aged between 25 and 45 at the time of applying for a bank loan;
submit a viable project for business creation or first installation, for an amount ranging between MAD 50,000 and MAD 500,000 approved by the parent company;
Projects of a cost of more than MAD 250,000 must be submitted by two entrepreneurs.
Financing projects
Eligible investment projects are financed with a contribution from the Fund and bank loan in keeping with the following criteria:
contribution from the Fund comprises:
a fixed sum of MAD 10,000 per project to cover first installation expenses, granted to entrepreneurs when their application is approved by the bank.
a flexible sum: maximum 10% of the investment programme with a MAD 15,000 ceiling for projects of a cost lower than MAD 250,000, and MAD 30,000 for projects in excess of MAD 250,000
Contributions are granted as non-refundable advance payments.
bank loan: 90% maximum
Loan repayment period
Bank loans should be based on a minimum repayment period of 7 years, with a deferred redemption on capital of 2 years minimum.
Guarantee
Bank loans are guaranteed on a pari-passu basis by the Central Guarantee Fund (CCG) and the bank granting the loan with:
guarantees relating exclusively to project components
delegated insurance relating to project components
delegated life insurance
Bank loans are also guaranteed by the Central Guarantee Fund for up to 85% of principal and interest, with the delegation to grant this guarantee extended to banks.
Submitting applications
prospective entrepreneurs submit their projects to the ‘maison de l’initiative’ for validation
entrepreneurs then submit their loan application to the bank which, if the application is approved, requests the release of the Central Guarantee Fund contribution
the Central Guarantee Fund releases the contribution to the bank within 10 working days (maximum) of receiving the bank’s request
* Projects can also benefit from advance payments from the state as part of the “Moukawalati” programme
Object of Fund: