Iran Relaunches Employment Loan Program with Focus on Sustainable Businesses
In a significant move to bolster the national economy and job market, the Iranian government has officially reopened applications for its Employment Loan program. This initiative, spearheaded by the Ministry of Cooperatives, Labour, and Social Welfare, is a cornerstone of the nation’s strategy to support micro and small enterprises, which are widely recognized as the primary drivers of job creation.
A Second Chance for Stable Enterprises
A key feature of the revamped program is the opportunity for existing businesses to apply for a second round of funding. According to officials, businesses that have previously received an employment loan are now eligible to apply for new “employer facilities,” provided they meet two critical conditions:
- Their business must have remained stable and operational for a minimum of three years.
- They must demonstrate the hiring or formal employment of new staff.
This policy is designed to reward successful entrepreneurs and incentivize job creation, with officials arguing that expanding a proven business is more cost-effective than starting a new one from scratch.
Financial Framework and Strategic Goals
The financial architecture of the program has been clearly outlined. For individual applicants and home-based businesses, the loan ceiling is set at 200 million Tomans. For employers seeking to expand their workforce, the ceiling is significantly higher, reaching up to 5 billion Tomans, with repayment periods extending to 60 months.
To ensure the program’s effectiveness, a strategic framework has been established. The High Employment Council has approved the annual employment program for executive bodies for the year 1404 (2025-2026), reinforcing the national commitment to this goal. Furthermore, a directive from the Central Bank mandates that executive agencies can allocate up to 20% of their resources to these renewed employer facilities, with individual agencies limited to a 10% cap of their annual quota for such loans.
Streamlining Access and Ensuring Compliance
The Ministry of Labour has adopted new policies to streamline the application process, emphasizing the provision of micro-loans without the need for in-person bank visits where possible. Responsibility for adhering to the program’s conditions rests jointly with the granting agencies, the Ministry of Labour, and the agent banks, ensuring a multi-layered verification process.
This comprehensive initiative by the government underscores a focused political and economic will to activate the country’s employment capacities, support entrepreneurs, and foster a resilient and prosperous labor market through sustained investment in small and medium-sized enterprises.