Lebanon Mobilizes $130 Million Support Package for Small and Medium Enterprises

Lebanon's Minister of Economy and Trade, Amer Al-Bassat, has unveiled a substantial support package aimed at stabilizing the nation's struggling small and medium enterprise sector. The initiative brings together approximately $130 million in assistance through grants and loans backed by the World Bank and donor nations including Norway and Canada.

The minister emphasized that Lebanon's economic difficulties have accumulated over seven years, a situation now intensified by the current military conflict. In response, the Ministry orchestrated a coordination effort involving international donors, particularly the European Union and World Bank, alongside Lebanese governmental and private sector institutions.

Al-Bassat highlighted the critical role of small, medium, and micro enterprises within Lebanon's economic framework. Prior to the crisis, these businesses represented roughly 95 percent of registered enterprises nationwide and contributed approximately 40 percent of gross domestic product. Beyond economic metrics, they provide more than half of formal sector employment opportunities.

"We are meeting today to focus on the segment that is most vulnerable to being affected, but at the same time it is the most important for employment, household income, and the path of economic recovery," the minister stated.

The primary obstacle facing these enterprises remains acute liquidity constraints. Al-Bassat identified the need for operational grants and adaptable financing arrangements that would enable businesses to maintain operations during the crisis period.

The Ministry has already conducted preliminary assessment work, surveying 200 companies to gauge their circumstances. Broader investigative efforts are underway through collaboration with the United Nations to develop a comprehensive understanding of institutional needs across the affected sector.

During the coordination meeting, donors demonstrated substantial commitment to supporting small and medium enterprises, with several pledging to reallocate previously designated funds toward the most pressing requirements of these businesses.

Meeting participants noted the availability of numerous entities and institutions capable of efficiently receiving and distributing donor resources. Discussion also encompassed potential collaboration between the Economy and Trade Ministry and the Social Affairs Ministry, exploring the application of the "Aman" mechanism to implement "Cash for Work" initiatives with enhanced precision and targeting.

Al-Bassat stressed the imperative of administrative excellence and financial accountability in managing these resources. "Lebanon cannot afford to lose viable institutions due to the slowness, dispersion, or difficulty of accessing support," he cautioned, underscoring the necessity of expediting program accessibility for intended beneficiaries.