Objective of the Programme
Raising the technological level of the Bulgarian economy through financing of SME’s.
Financing of projects under EU pre-accession and structural funds.
Who meets the application requirements?
Companies registered in the country which meet the criteria for small and medium-sized enterprises pursuant to the Act on SME’s, with proven capacity for prompt implementation of new technologies bringing their activity in compliance with European standards for achieving high productivity levels; production of competitive products, goods and services.
When applying, borrowers should present references from the respective industrial organisations of which they are members.
What type of investments are eligible for financing?
Any high productivity, economically sound and environmental investment in the country, performed by existing and start-up companies in all economic sectors and branches.
A passport and a document for compliance with the European standards should be presented upon application for financing for purchasing of new machines, equipment and tools.
A passport and a document for compliance with the European standards indicating their historical memory should be presented upon application for financing for purchasing of used machines, equipment and tools.
The following may be subject of the investment:
- purchase of machines, equipment, technologies and vehicles and their launching into operation;
- infrastructure facilities;
- construction and furnishing of industrial buildings, hotels, shops, offices, health care institutions and others;
- financing of technological transfer (licenses and patents);
- financing of ISO certification and other modern standards for quality assurance and good production practices;
- improvement of labour and safety conditions;
- improvement of hygienic conditions for production and ecosystems for environmental protection;
- working capital as part of the investment project intended mainly for training of staff servicing new technologies.
The following do not meet the requirements for financing:
- military industry;
- residential construction;
- trade in real estate;
- tobacco production and processing;
- financial transactions, gambling;
- purchase of minority share and packages of shares;
- production of high alcoholic content beverages.
Loan amount
The minimum amount of each loan is BGN 30 000.
Borrower’s participation
The amount of the borrower’s participation should be minimum 25% of the value of the financed investment (VAT exclusive).
Loan conditions
Term - from 4 to 10 years.
Grace period - up to 3 years.
Interest rate - depending on the risks of the project and the term of return on the investment.
Interest on the loan is due monthly.
The repayment of the principal begins after the grace period and is negotiated individually with each borrower.
Collateral
The collateral is in accordance with the banking legislation.
Under certain conditions the bank extends loans under relieved requirements for collateral (up to 85% of the amount of the loan) owing to a guarantee issued by the European Investment Fund under the multi-year programme for small and medium-sized enterprises of the European Community.
Assets that are subject of the investment project are also acceptable as collateral of the loan.
