To be eligible for loans from the revolving fund an enterprise must be a member of FEI.

     

Prior to ECO’s recommendation for providing loans to SMEs the following steps and actions are taken:

     

  1. “Pre-screening” comprises all the steps from the first contact between ECO and the enterprise (kick-off workshop, tel. call, fax, visit etc.) till an agreement is made between the parties, including consulting fees etc.

     

  1. Step 2 is ECO's actual “Screening” of the enterprise. This typically takes a couple of hours (ref. Template # 1).

     

  1. In step 3 ECO requests NBE to judge the creditworthiness (go/no go) of the enterprise and report back to ECO.

     

  1. A Letter of Intent for cooperation is then signed by FEI/ECO and the enterprise.

     

  1. The first stage is the “Pre-assessment” of the workshop of the enterprise. This is supervised by an ECO coordinator often assisted by an ETC (Egyptian Technical Consultant). The process takes approx. 5 days. A report is prepared and presented to the enterprise for approval (ref. Template # 2).

     

  1. Once the report is approved by the enterprise, ECO proceeds to the “Full assessment”, again often assisted by ETC. The full assessment is the most time-consuming and takes about 25 working days. A detailed report is made (ref. Template # 3). At this stage on-the-job-training of management, staff and/or workers is offered (optional) as a separate package.                                     

 

  1. When the enterprise has approved the full assessment report, ECO determines and recommends the size of the loan to be given and presents the project application to the Executive Committee (ref. Template # 4).

     

  1. The approved application is forwarded to the NBE for further action.

  

  1. All enterprises receiving loans for equipment must follow the normal purchasing procedures for equipment to be acquired, i.e. by tender and tender can only be for new equipment.

     

  1. The supplier of equipment is selected (with the assistance of ECO) and NBE then proceeds with the actual loan disbursement (formalities) divided into three portions: Down-payment on receiving the equipment, after installation and commissioning.