START-UP FUNDING
The Loden Foundation holds bi-annual calls for Start-Up Funding of business proposals. While banks charged double-digit interest rates and required valuable assets as collateral, Loden provided 2008 interest-free and collateral-free funding to attract the best of ideas.
This funding program supports a diverse range of entrepreneurial ventures that align with national priorities, such as job creation, import substitution, and economic resilience. Eligible business proposals must be (1) financially viable, (2) socially beneficial through job creation, import substitution, or other community impacts, (3) environmentally friendly, and (4) culturally sensitive within the Bhutanese context.
Submissions are to be made through detailed business proposals, with the selection process conducted in two stages. In the first round, proposals are evaluated using a standard scoring sheet by a panel of local and international experts with profound knowledge of Bhutan. Approximately 15-20% of proposals are shortlisted for the second round, where applicants participate in an interview to gauge their entrepreneurial drive and aptitude.
Each year, between 15-25 businesses are selected for funding..Selected entrepreneurs receive a four-year, interest-free loan of up to Nu. 1.5 million. Our volunteers and staff also provided mentoring and monitoring support. Entrepreneurs are expected to submit regular progress reports and repay the loan within four years, following a three to six-month grace period.
The Loden Foundation also conducts sector-specific and targeted calls for businesses in agriculture, technology, and education, as well as key population groups, including women entrepreneurs, youth-led businesses, and rural enterprises. By addressing the unique needs of these sectors and groups, we aim to foster inclusive economic development. Additionally, we offer a special Creative Funding Category to promote entrepreneurship in Bhutan's creative sector, supporting businesses in arts, design, audiovisuals, and other creative industries, recognizing the importance of cultural expression in Bhutan's economy.
