First Loss Portfolio Guarantee to Mitigate the Consequences of COVID-19, financed with funds from the Operational Program" Innovation and Competitiveness "2014 - 2020 - Fund Manager for Financial Instruments in Bulgaria

The purpose of the instrument / programis to facilitate business access to loans in support of the continuation of the activity of enterprises, as well as meeting their liquidity requirements and/or overcoming 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 consequences from the spread of the Covid-19 Pandemic, according to the current legislation.

What loans are granted?

  •  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.
  • There is no limit on the amount of each loan.

What are the benefits of the program?

  • The guarantees are free of charge for the final borrower.
  • The guarantee covers up to 80% of the allocated funds.
  • Possibility for a longer grace period on the principal.
  • Collateral with a guarantee of 80% - Not more than 60% of the value accepted by the bank

Minimum and maximum loan term: from 12 months to 120 months

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

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

Currency: BGN, EUR

Fees and commissions: In accordance with the rates of the Bank

Deadline for inclusion of guarantees in the portfolio: 08.04.2022

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 Operational Programme Innovation and Competitiveness 2014 — 2020 co-financed from the European Regional Development Fund.