Intilaka Program Morocco: Funding for VSEs and Business Creation

Launched under High Royal Instructions in February 2020, the Intilaka program stands as a major pillar supporting entrepreneurship in Morocco. Designed to stimulate job creation, foster self-employment, and boost productive investment, this government initiative offers crucial funding opportunities for Very Small Enterprises (VSEs) and project initiators.

With credits totaling over 8 billion dirhams and benefiting more than 28,000 businesses, Intilaka has quickly established itself as the primary financing mechanism for startups and VSEs across the Kingdom. It provides some of the most attractive funding conditions on the market, thereby facilitating access to capital for those looking to realize their entrepreneurial ideas in Morocco.

What is the Intilaka Program?

The Intilaka program is an integrated support and financing scheme designed to combat the informal sector and facilitate access to credit for entrepreneurs. Its main objective is to reduce unemployment, especially among young people, by providing structured support and adapted funding to transform their initiatives into sustainable businesses. It serves as a vital lever for developing the national economic fabric.

Tamwilcom's Essential Role in the Intilaka Program

Funding granted under Intilaka benefits from a public guarantee through Tamwilcom (formerly Caisse Centrale de Garantie - CCG). This public body, specializing in providing guarantees, plays a decisive role by sharing risk with partner banks, covering between 50% and 80% of the credit amount. This mechanism allows entrepreneurs who lack sufficient personal guarantees to access bank financing, a significant advantage over conventional credit offers.

Who Can Benefit from the Intilaka Program?

The Intilaka program targets a wide range of economic actors and project initiators in Morocco:

• Qualified young graduates
• Auto-entrepreneurs registered in the national register
• Individual entrepreneurs and natural persons
• Very Small Enterprises (VSEs) and young companies less than 5 years old
• Individual farmers and cooperatives in rural areas
• Innovative startups (can be combined with the dedicated tax regime)

This program finances both investment expenditures and initial operating costs. A dozen partner banks are mobilized to distribute these funds, offering a wide choice to applicants.

Eligibility Conditions for the Intilaka Program

The eligibility criteria are designed to be accessible while targeting businesses with growth potential:

• For newly created companies: Projected turnover of less than 10 million dirhams.
• For existing companies in urban areas: Less than 5 years of existence and a projected turnover of less than 10 million dirhams.
• For existing companies in rural areas: Same conditions as urban areas, with an exemption for agricultural holdings.

Exporting companies to Africa are exempt from the age condition, providing a boost for the development of South-South trade.

The 3 Flagship Financing Products of Intilaka

The program offers three main products, each tailored to specific needs:

1. Damane Intelak Credit (Urban Projects)

Intended for projects and businesses located in urban areas, covering all economic activities, with the exception of real estate promotion and deep-sea fishing.

• Amount: Up to 1.2 million dirhams (combined investment and operating credit).
• Guarantees: No personal guarantees are required; only project-related guarantees (premises, equipment, business goodwill).
• Pricing: Interest rate of 2% HT, free application fees, insurance premium of 0.1% HT.

2. Damane Intelak Al Moustatmir Al Qarawi Credit (Rural Projects)

Designed for projects in rural areas, with the same activity exclusions as urban Damane Intelak.

• Amount: Up to 1.2 million dirhams.
• Guarantees: Identical to Damane Intelak (no personal guarantees).
• Pricing: Even more advantageous interest rate at 1.75% HT, free application fees, insurance premium of 0.1% HT.

3. Start-TPE Loan (Complementary Free Loan)

This loan complements the investment credit to finance initial working capital requirements. It is a one-time loan repayable within a maximum of 5 years.

• Amount: Up to 20% of the investment credit, capped at 50,000 dirhams.
• Guarantees: No guarantees required by banks.
• Pricing: Interest rate of 0% (entirely free loan), free application fees.

Intilaka vs. Forsa: Understanding the Differences

While both Intilaka and Forsa programs aim to support entrepreneurship in Morocco, they have distinct specificities:

• Funding Amount: Intilaka can reach 1.2 million DH, whereas Forsa is capped at 100,000 DH with an additional subsidy of 10,000 DH.
• Guarantees: Intilaka relies on Tamwilcom for project guarantees, while Forsa simplifies procedures without involving the CCG.
• Target Audience: Intilaka targets VSEs and more structured project initiators, while Forsa primarily targets young first-time entrepreneurs with a greater need for comprehensive support.
• Support: Forsa includes an online training and incubation component, whereas Intilaka focuses on the financing aspect.

How to Apply for Intilaka Funding?

The procedure to benefit from the Intilaka program involves several key steps:

1. Develop a solid business plan: This is the most critical step. A well-crafted project with realistic forecasts is essential to convince banks. A rejection rate of approximately 40% is often due to weaknesses at this stage.
We can elaborate your business plan, contact us for more informations.
2. Choose a partner bank: Select one of the 12 institutions partnered with the program.
3. Compile your dossier: Gather all supporting documents (CIN, trade register, feasibility study, etc.).
4. Submit the application: The bank will review your dossier and forward it to Tamwilcom for guarantee approval.
5. Await approval: Once approval from both the bank and Tamwilcom is obtained, funds can be disbursed.

To maximize your chances of success, it is highly recommended to seek assistance from an accountant or a specialized firm such as iHub to structure your business plan and present an impeccable dossier. Our expertise in business creation and financing in Morocco can make all the difference.

Overview and Impact of the Intilaka Program

Since its launch, Intilaka has generated impressive results: over 28,000 businesses funded, leading to global investments estimated at 13.7 billion dirhams and the creation of nearly 97,000 direct jobs. These figures underscore the program's transformative impact on the Moroccan economy, particularly by stimulating local entrepreneurship and fostering economic inclusion.

Conclusion

The Intilaka program is much more than a simple line of credit; it is a strong commitment from the Moroccan state to support entrepreneurship and value creation. By offering advantageous financing conditions and a robust guarantee system, it opens doors for thousands of Moroccans eager to launch or develop their businesses. If you are considering starting your company in Morocco or if your VSE needs a financial boost, Intilaka could be the solution. iHub is at your disposal to assist you in developing your project and navigating the application steps, transforming your entrepreneurial vision into reality.