What is the COVID-19 National Response
Guarantee Program?
The
Private Sector Stabilization Program is a 100% guarantee scheme of the
Government of Qatar to help mitigate COVID-19 impacts by relieving the most
critical short-term payments private sector companies will face during the next
3 months (April, May and June 2020).
Why is there a guarantee scheme for the
private sector?
Due to the
COVID-19 outbreak, quarantine measures have had a significant impact on consumer
and business spending, making it difficult for companies to meet critical short-term
payments.
What are the components financed by the
guarantee scheme?
· Staff payroll as per the Wage
Protection System (WPS) registry for a period of up to 3 months paid on a
monthly basis.
· Rental payments (factory, business
outlet, warehouse and labor accommodation rent) for a period of up to 3 months.
Who is eligible for this program?
100%
privately owned companies incorporated under the regulation applicable to Qatar,
with valid commercial registration and license or other certification to prove incorporation
and operation, which have been impacted negatively by COVID-19.
Exclusion:
Companies operating in real estate, construction or contracting as indicated on
valid commercial registration.
Do group/ holding companies submit an
application per group/ holding or per subsidiary?
Application
will be limited to one loan per Qatar ID and per CR. Each Qatari obligator is
eligible to apply for only 1 company where their shareholding is 10% or
greater.
Can Qatari companies with foreign parent
companies submit applications?
Any
company that exist in Qatar and are registered in Qatar with a minimum
ownership of 10% by Qatari nationals will be eligible (each Qatari is eligible
to benefit once in one CR).
What is the total guarantee amount per
company?
Each
application will be assessed with maximum financing allowed per beneficiary company
up to QAR 2.5 million per month for a
period of 3 months (not exceeding QAR 7.5 million in total) based on the actual
amounts of employee salaries and rental payments. Actual amounts of monthly
employee salaries not to exceed QAR 10,000 per employee/ per month.
What is the Loan tenor and rates?
Loan Tenor
will be maximum 3 years.
If loan
amount is fully repaid during the first 6 months, no interest rate will be
charged.
If
financing is fully repaid during 7-12 months, customer will be charged QCB
Lending Rate + 1% p.a.
If
financing is fully repaid during 1 to 2 years, customer will be charged QCB
Lending Rate + 2% p.a.
Commercial
Bank maintains the right to extend loan period and revise interest at our discretion
for loans from 2-3 years.
Are companies charged any other fees for availing the loan?
No, there
are no fees and charges.
What Documents and Collateral is required?
· Valid Commercial Registration
· Valid Computer Card
· Valid QID copy of partner(s) / Valid
passport copy for non-Qatari partner(s)
· Personal guarantee and personal
cheques issued by the company obligator covering 100% of the amount of
financing
· Audited Financials for last 2 years
· Proof of most recent payroll
disbursement in the last 3 months (for payroll support)
· Rental Contract copy (for rental
support)
· Proof of having honored the rental
dues of most recent month (for rental support)
· Active Commercial Bank account for
more than 1 year
· Clean Credit Bureau Report (Corporate
& Partners)
· Less than 3 returned cheques on
account over last 6 months
· Updated Commercial Bank account
documentation
How will funds be disbursed?
Disbursement
to be made directly to the company employees through the WPS mechanism on a
monthly basis based on the payroll list submitted by the company. For the
companies whose rental fees were not waived by the landlord or the government,
rental payments will be made directly to the landlord’s account based on the
rental agreement to be provided in support of the rental payment computation.
How can I apply for the COVID-19 National
Guarantees Response program?
If you are
eligible, please forward all above-mentioned required documents to covid19nrgp@cbq.qa or
directly to your Relationship Manager for review. Relationship manager will
forward Application form to customers who are eligible.
What happens after a company submits its
application?
After
review and approval of submitted documents by Commercial Bank and Qatar
Development Bank, Commercial Bank will process loan and forward information to
QDB for guarantee.
Who can I reach out to incase I need more
information/ help with this program?
We advise
you to reach out to your Relationship Manager or our Contact Center on 4449
0000.
You can
also contact QDB for general information about the program on 4430 0000.