1. Supporting the work-seekers (vocationals and craftsmen) by establishing individual and family self employment projects and by sharing in finding job opportunities for the manpower of different educational and vocational levels through developing the will towards work for those who are interested in investment as business owners.
2. Participating in spreading the individual initiatives and enhancing the efforts of self independence as a condition to achieve the everlasting development.
3. Supporting the developmental efforts by establishing productive and serviceable small projects as a main source of the national income.
4. Enlarging the base of private sector and businessmen.
5. Developing the small projects sector and suggesting the policies and mechanisms for realising them.
6. Participating effectively in the Omanisation plan in the private sector.
7. Mobilising the efforts for deepening the idea of free business and enhancing the initiatives for work and production in the minds of youth and Omani society.

Targeted categories

1. Work seekers (male and female) including the fresh graduates who are interested in starting small projects managed by them.
2. Craftsmen who are interested in starting new productive or serviceable work for themselves.
3. Craftsmen and vocationals who are practising their work and interested in expanding it.

Projects qualified to obtain small loans

The targeted categories have more ability to decide the suitable projects. But there are some successful sectors if provided with technical and financial support such as: 

1. Grocery shops (sale of food stuffs)
2. Vegetables and fruit shops
3. Sale and supply of electrical items
4. Sale of watches, masterpieces and gifts
5. Sale of ready-made garments
6. Sale of natural flowers
7. Delivery vehicles
8. Carwash 
9. Internet café
10. Photography shops
11. Sale of fish
12. Butchery shops
13. Poultry shops
14. Home appliances maintenance
15. Sale and repair of tyres
16. Electrical installation, sale and supply of electrical items
17. Repair and maintenance of home cooling appliances
18. Painting of buildings
19. House furniture upholstery
20. Carpentry shops
21. Iron smithery shop (metal doors and windows)
22. Goldsmithery shops

Basic conditions of the projects qualified for financing
Approval of the project is given if all or some of the following conditions are fulfilled:

1. The project should provide a new job opportunity.
2. The project should have suitable technical and economical benefits.
3. Local raw materials to be used in the project.
4. Products of the project should be of good quality and easy to market.
5. The modern technology to be used in the project.
6. The ability to continue and expand in the future.
7. The project should comply with the conditions and requirements of the environment preservation.
8. The project should satisfy the need for quality products at competitive prices.
9. Omanis working in the project should be 100 percent.

General conditions

1. Age between 18 - 40 (Omani male or female)
2. Able to read and write well.
3. Not working at present.
4. Should be fully free for the project with an acknowledgement to be presented.
5. For the loans of sewing and designing clothes, a training certificate to be obtained.
6. Financing projects will be according to the fund rules.
7. Should have a personal guarantor (father, brother, sister….)
8. Should have a place for establishing the project (owned or rented).
9. Should have good reputation and behaviour.
10. Should have a real interest for establishing the project with ambition and insistence.
11. Should present two quotations for the prices of the machines and equipments of the project.
12. Copies of the identity card or passport to be presented.
13. Should present a feasibility study of the project showing the cash flow during the period of the loan.
14. Should present an acknowledgement to employ Omani manpower only.
15. Assets of the project will be mortgaged.
16. The commercial registration of the project will be mortgaged or present post dated cheques.
17. Should sign an abandonment to the fund regarding the project assets financed by the Fund. In case the borrower does not adhere to the conditions of the loan agreement, the Fund has the right to own these assets without referring to the borrower or any other judicial authority.
18. Should insure them against theft or fire.

Loan amount and procedures of financing

1. The maximum amount of the loan is RO 5,000 per person. More than one person can participate in one project.
2. The loan will be given if it is approved as per the feasibility study and cash flow presented by the owner and approved by the Fund.
3. Oman Development Bank will give the loan amount after approval and recover it as per the Fund regulations.

Way of settlement 

1. Period of the loan settlement is seven years including one year as a grace period starting from the date of granting the loan. Settlement will be as monthly or quarterly or half yearly installments depending on the cash flow expected in the project study.
2. Interest will be 2% per annum to cover the administrative cost of the loan. But it is not subjected to the grace periods mentioned in article (4). During the grace period, it will be settled as quarterly installments. After this period, it will be settled alongwith the loan installments.
3. The borrower must present the guarantees required to cover the loan. These guarantees are all/some of the following:

a. Mortgage the project assets.
b. Mortgage the commercial registration of the project or by presenting post dated cheques for the installments.
c. Signing an abandonment to the Fund regarding the project assets financed by the Fund. In case the borrower fails to adhere to the loan agreement, the Fund has the right to own these assets without referring to the borrower or any other judicial authority.
d. The Fund will insure the project assets against theft and fire provided the insurance installments are deducted from the loan amount.
e. The borrower has no right to use the loan amount for other purposes except for the purpose mentioned in the agreement.

Mechanisms of technical support and follow up of the small projects.
Sanad office in the governorates and regions will provide the technical and administrative support to the beneficiaries. They will be responsible for the following:

1. Providing advice and consultancy services to the owners of the small projects regarding the activities to be practiced. This assistance will be provided through studies of the investment opportunities available in the new projects in the different regions of the Sultanate.
2. Field follow-up for the stages of executing the small projects and evaluating them after execution.
3. Organising short courses for training the owners regarding management, accounts, cost and marketing with the cooperation of the concerned parties in the public and private sectors.
4. Follow-up of the projects in order to be assured of quality whether they are goods or services.
5. Solving the problems and difficulties which may face these projects.
6. Discussing the best ways for marketing the products and suggesting the possibilities available inside or outside the Sultanate such as seminars and conferences coordinating with the Ministry of Commerce & Industry and Oman Chamber of Commerce & Industry.
7. Supervising the field studies to decide the best projects which could be established in the different regions.
8. Periodical evaluation (social and economical) of the small projects and their effects on the targeted categories and the national economy in general.