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BDB and BACB signed the first agreement under COSME+ program to support small and medium businesses

BDB and BACB signed the first agreement under COSME+ program to support small and medium businesses
EUR 10,000,000 SME lending was launched under better terms and conditions

The COSME+ program is supported by the European Fund for Strategic Investments and offers indirect financing to SMEs combined with with guarantees and counter guarantees. The program’s target is to provide to SMEs easy access to financing throughout the different stages of their life cycle: creation, expansion or transfer of activity.
Thanks to the COSME + program, the guarantee now covers up to 60% of the loan amount, thus reducing the collateral requirements towards the businesses and unlocking financing opportunities.
With BDB providing the COSME + guaranteed funds, BACB is to lend investment and working capital loans as well as bank guarantees. The maximum loan amount will be up to EUR 150,000 with repayment period between 12 and 120 months. The interest rate is capped to 3M EURIBOR + margin of up to 5.7%. The maximum guarantee fee is 2% p.a.
COSME + enables the bank to decrease its collateral requirements, thus prioritizing start-up projects, and provides additional incentives for entrepreneurs as well. These conditions are a real tool for promoting entrepreneurship, people who are at risk of social exclusion and are looking for their integration into society through the implementation of "Social Impact Projects".
This program became available upon EIF and BDB signing a new agreement for counter-guarantee, part of the COSME program for supporting small and medium business in Bulgaria.
It’s objective is to facilitate the access to long-term and low-interest-rate financing to Bulgarian companies under reduced collateral requirements
COSME is implemented with the support of the European Strategic Investment Fund, also known as the "Juncker Plan". This is the second contract, signed between EIF and a Bulgarian bank, and the first for BDB under the COSME program.

About COSME program
The COSME program builds upon the Entrepreneurship and Innovation Program (EIP) that was set up during 2007-2013. Its total budget is EUR 2.3 billion for the period 2014-2020. It covers four areas of support – improving the access to financing for SMEs in the form of equity and debt instruments; improving the access to global SME markets; improving the framework conditions for enterprise’s competitiveness as well as promoting entrepreneurship.