Abstract: This study was purposed to empirically analyse challenges, opportunities and prospects for loan financing of SMEs in Lusaka through the statutory Citizens Economic Empowerment Fund. The study adopted a descriptive analytical research design incorporating quantitative and qualitative methodological paradigms with the questionnaires, focus group discussion and semi-structured interviews being the main data collection tools. The study targeted 500 (N) SMEs in selected Central Business District points of Lusaka with 50 as sample size (n).