START-UP FUNDING
The Loden Foundation convenes bi‑annual calls for Start‑Up Funding, inviting the submission of innovative business proposals. At a time when financial institutions imposed double‑digit interest rates and demanded substantial collateral, Loden distinguished itself in 2008 by offering interest‑free and collateral‑free financing
This funding programme extends support to a broad spectrum of entrepreneurial ventures that are strategically aligned with Bhutan’s national priorities, including job creation, import substitution, and the strengthening of economic resilience. To qualify, business proposals must demonstrate (1) financial viability, (2) social value through employment generation, import substitution, or other tangible community benefits, (3) environmental sustainability, and (4) cultural sensitivity, ensuring coherence with Bhutanese traditions and societal values.
Submissions are required in the form of comprehensive business proposals, with the selection process structured into two distinct stages. In the initial round, proposals are rigorously assessed against a standardized scoring framework by a panel of both local and international experts possessing extensive knowledge of Bhutan’s socio‑economic context. Approximately 15–20% of submissions advance to the second stage, wherein applicants undergo an interview designed to evaluate their entrepreneurial vision, drive, and aptitude.
Each year, between 15 and 25 businesses are selected to receive funding. Successful entrepreneurs are granted a four‑year, interest‑free loan of up to Nu. 1.5 million. In addition to financial support, Loden’s dedicated volunteers and staff provide ongoing mentoring and monitoring to guide business development. Recipients are required to submit regular progress reports and are expected to repay the loan within the stipulated four‑year period, following an initial grace period of three to six months
The Loden Foundation also issues sector‑specific and targeted calls for entrepreneurial ventures in agriculture, technology, and education, as well as for key population groups, including women entrepreneurs, youth‑led enterprises, and rural businesses. By tailoring support to the distinct needs of these sectors and communities, the Foundation seeks to advance inclusive and sustainable economic development. In addition, a dedicated Creative Funding Category has been established to stimulate entrepreneurship within Bhutan’s creative industries—encompassing arts, design, audio-visual production, and related fields—underscoring the vital role of cultural expression in strengthening Bhutan’s economy.
