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).
The applicant company should be owned (completely or with a majority share) by members of a family and the latter should also be the company managers. At least one of the employees should also be a family member.
What investments meet the requirements for financing?
Every economically sound and environmental investment in the country in the following areas:
• Industry
• Energy
• Tourism
• Transport
• Commerce
• Health care
• High technologies
• Other
The following are allowable as subject of the investment:
• Purchase and construction of industrial buildings, hotels, offices, health care institutions and others.
• Furnishing of hotels, offices and others.
• Purchase of machines, equipment, technological and office equipment, vehicles, etc.
• Purchase of non-tangible assets, i.e, licenses and patents.
• Working capital as part of the investment capital.
How much funding may be provided under each project?
The total value of the project applying for financing may not be less than EUR 20 000 and more than EUR 1 000 000 (VAT exclusive).
The amount of the borrower’s participation in the financing of the project should be minimum 25% of the value of the financed project VAT exclusive.
The minimum amount of each loan is EUR 15 000 and the maximum amount is EUR 250 000 or their equivalent in BGN.
Loan conditions:
Term - from 3 to 10 years.
Grace period - depending on the term for launching of the project, but not more than 3 years.
Interest rate – according to the risks of the project and the term of repayment of the investment.
The interest on the loan is due monthly.
Repayment of the principal begins after the grace period and is negotiated individually with each borrower.
What collateral is required?
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.
The subject of the investment project is also acceptable as collateral of the loan.
