BDB SME COVID-19

Portfolio guarantee programmeof Bulgarian Development Bank AD in support of the liquidity of micro, small and medium-sized enterprises (SMEs), affected by the emergency situation and the COVID-19 epidemic

For inquiries and additional information: EuropeanProjects@bacb.bg

Who can apply?

Micro, small, mediumand large enterprises in accordance with the Law, registered in Bulgaria, which have been affected by the adverse economic consequences from the spread of the Covid-19 Pandemic, according to the current legislation.

What loans are granted?

  • Working capital financing
  • Minimum and maximum term of loans: none
  • Deadline for inclusion of guarantees in the portfolio: 23.12.2021
  • Currency: BGN/EUR
  • Fees and commissions: In accordance with the rates of the Bank
  • Interest: according to the Bank's Tariff
  • Maximum amount:
    up to BGN 1 000 000 for SME
    up to BGN 2 000 000 for large enterprises
  • Collateral: maximum 50% according to the bank's policy + 80% guarantee from BDB AD

Final recipient eligibility criteria (THE EXISTENCE OF ONE OF THE FOLLOWING IS SUFFICIENT)

  • Loss of turnover after the first quarter of 2020, compared to the same period in 2019 (based on the company's financial statements)
  • Existence of customer receivables that have not been received/outstanding payments to suppliers, after 01.03.2020 (based on the financial statements of the company)
  • Suspended imports, vital for the enterprise’s activity - after 01.01.2020, cancelled export contracts (based on certificates and documents, submitted by the company)
  • Illness cases and self-isolation of employees, overall decrease in the number of employees, closed production facilities, premises and offices (based on certificates and documents, submitted by the company)

 Maximum amount of loan to a borrower and related parties:

  • For loans with maturity after 30 June 2021, the amount of the loan/loans of the individual Borrower must not exceed:
    - twice the annual value of the Borrower's salary costs (including social security contributions and costs for staff working on site at the enterprise, only officially appointed to work) for 2019 or for the last available year.
  • For enterprises established after 1 January 2019, the maximum amount of the loan must not exceed the expected annual salary value for the first two years of the company’s operation; or
    25% of the total turnover of the Borrower in 2019; or
    with appropriate justification and on the basis of self-certification by the Borrowerof its own liquidity needs, the amount of the loan may be increased, in order to cover their liquidity needs, after providing the above-mentioned, for the next 18 months for SMEs;
  • For loans with a maturity by 30 June 2021, the principal amount can be higher than that referred to in Article 25 (d) of the Temporary Framework, supposing that an appropriate justification is provided and the proportionality of the aid remains guaranteed.