The bank will provide direct loans guaranteed by the EIF. The Bulgarian Development Bank starts a new program with the support of the Pan-European Guarantee Fund, which aims to encourage investment and reduce the negative effects of the COVID-19 pandemic. It is specifically targeted at small and medium-sized businesses, creative industries and start-ups.
The new program amounts to 40 Million Euro and provides for the granting of direct loans with lower than standard collateral and deductible requirements, depending on the project and the business history of the applicant companies.
Loans to companies with creative activities, which are among the most affected by the pandemic, are up to BGN 500,000. The main advantages are the reduced requirement for collateral and minimum deductible - 10% of the amount of the requested loan.
Newly established companies without a credit history, which have the most difficult access to financing, can apply for loans with a ceiling of BGN 250,000, without the need to pledge their property or look for a solvent co-debtor. A guarantee for the bank will be the asset purchased through the loan.
Small and medium-sized enterprises from all sectors that do not fall into the other two segments can also benefit from better loan terms: from BGN 100,000 to BGN 5 million, for a period of up to 10 years and a grace period of up to 18 months. For them there is a possibility for financing without collateral and with reduced requirements for own participation - 2 times lower than the standard levels.
Interest rates on loans under all three programs will be discounted due to EIF guarantee coverage.
Companies can now submit their applications online or on site, at the BDB office in Sofia, at 1 Dyakon Ignatiy Str.
The funding provided by the EGF Guarantee Facility, implemented by the European Investment Fund (EIF) with the financial support of the Member States of the European Union, which contribute to the Pan-European Guarantee Fund (EGF).
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