First Loss Portfolio Guarantee to Mitigate the Consequences of COVID-19, financed by the INOVATION AND COMPETITIVENESS 2014-2020 Operational Program - Fund Manager for Financial Instruments in Bulgaria

The purpose of the instrument/program is to facilitate business access to loans in support of the continuation of the activity of enterprises, so they meet their liquidity requirements and/or overcome financial difficulties caused by the pandemic..

Who can apply

Micro, small and medium enterprises in accordance with the Law for SME, registered in Bulgaria, which have been affected by the adverse economic effects of the Covid-19 pandemic, according to the current legislation.

Types of loans

  •  Investment Loans with the possibility of up to 24 months a grace period on the principal
  • Working Capital Loans with the possibility of up to 12 months grace period on the principal
  • Loans for overcoming financial difficulties, caused or aggravated by COVID– 19.
  • No limit on the amount of each loan.

Benefits of the program

  • The guarantees are free of charge for the final borrower
  • The guarantee covers up to 80% of the allocated funds
  • Optional longer grace period on the principal
  • Collateral with a guarantee of 80% - no more than 60% of the value accepted by the bank


  • Minimum term of the loan - 12 months
  • Maximumf term of the loan - 120 months

The guaranteed amount shall not exceed the limits determined by the de minimis aid rules:

  • 2.93 million BGN (or 1.46 million BGN for companies performing road freight transportation) with a five-year warranty duration, or
  • 1.46 million BGN (respectively 0.73 million BGN for companies performing road freight transportation) with a ten-year warranty



Fees and commissions

In accordance with the BACB Lisf of term and conditions for legal entities

Deadline for inclusion of guarantees in the portfolio


The Bank provides financing on concessional terms with the support of a guarantee provided by the Fund of Funds. The funds required to make the guarantee commitment are provided under the  INNOVATION AND COMPETITIVENESS 2014-2020 Operational Programme, co-financed from the European Regional Development Fund.