National Guarantee Program (response to COVID-19)

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 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.​​​​​​​​​​​​​​​​