Tunisia Launches 'Prêt d'Honneur' to Facilitate Small Business Financing

The Central Bank of Tunisia has introduced a new financing mechanism called 'Prêt d'Honneur' to facilitate access to credit for small businesses and entrepreneurs. This initiative aims to address the challenges faced by small enterprises in securing funding due to lack of collateral and equity. The program was launched on October 1, 2026, and has already generated significant interest, with nearly 14,200 applications reported by early October.

The 'Prêt d'Honneur' offers financing options without interest or personal guarantees, with a maximum limit of 10,000 dinars for small projects, 25,000 dinars for small and medium-sized enterprises (SMEs) and community societies, and 5,000 dinars for individuals. Repayment terms are up to two years, with a six-month grace period. According to Mohamed Adem Mokrani, an international lawyer and consultant, this mechanism marks a significant shift in Tunisia's credit access criteria, prioritizing project viability and repayment capacity over collateral availability.

The program's success will depend on its ability to generate investments, create viable businesses, and provide sustainable jobs. Mokrani emphasizes that the initiative's impact will be measured not only by the number of credits granted but also by the creation of enterprises, their sustainability, and the jobs generated. The 'Prêt d'Honneur' is expected to support the creation and development of small businesses, particularly in their early stages, by facilitating initial investments and strengthening their cash flow.

To ensure transparency and equal treatment among applicants, the regulations provide for digital application procedures, a maximum of ten working days for processing applications, and mandatory justification for refusals. Mokrani also raises concerns about the status of associations already practicing 'Prêt d'Honneur' in Tunisia, advocating for regulatory clarification of their activities and cooperation between banks and associative structures.

The 'Prêt d'Honneur' is part of a broader reform aimed at integrating this mechanism into Tunisia's banking system, making its implementation mandatory. This reform is based on the Commercial Code amendment of August 2, 2024, and the decree of July 23, 2026. According to Mokrani, 50% of the allocated funds must be dedicated to SMEs and community societies, and although no collateral is required, applicants' repayment capacity will still be assessed.

The mechanism's limited funding and relatively short repayment period may restrict its impact. Therefore, it should be considered as a complementary instrument to investment credits and other financing mechanisms. The challenge now is to transform this mechanism into a genuine lever for productive investment and sustainable job creation.

As the 'Prêt d'Honneur' moves from regulation to practical implementation, its effectiveness in addressing the financing needs of small businesses and entrepreneurs will be closely monitored. The program's ability to stimulate economic growth, create jobs, and promote sustainable businesses will ultimately determine its success.

Key points

• The 'Prêt d'Honneur' offers financing options without interest or personal guarantees, with repayment terms of up to two years and a six-month grace period.