SMEs COVID-19

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?

• Existing loans and new financing for liquidity needs.

Minimum and maximum term of Loans: None

Deadline for inclusion of securities in the portfolio: December 23rd, 2020

Currency: BGN/EUR

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

Interest: In accordance with the rates of the Bank

What are the advantages of the program?

  • The guarantee covers 80% of loans
  • Lighter requirements for collateral.

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 31 December 2020, 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 31 December 2020, 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.

In any case, the maximum amount of the provided financing must not exceed BGN 300,000 (three hundred thousand) to the Borrower and the related parties.

For inquiries and additional information: EuropeanProjects@bacb.bg