BDB will finance businesses directly under the "Investment Plan for Europe"
Bulgarian Development Bank (BDB) offers a new credit product for direct financing under the "Juncker Plan" to the Bulgarian enterprises, thus giving financial advantage in the form of cheaper funds of a minimum amount of BGN 300,000 as investment and working capital loans.
The financing targets the purchase and renewal of tangible and intangible assets, patents and licenses, and can also take the form of a working capital loan or overdraft. The business transfer of business following generation change or the purchase of an enterprise by its employees are also eligible. Depending on the project specifications, the recommended level of own participation in investment projects is 25%, while the projects’ implementation period to be up to 3 years from the starting date.
BDB’s direct financing program amounts to BGN 150 million and is targeted to support micro-enterprises, SMEs and mid-caps with up to 3 000employees. The financing of mid-caps will be limited to 30% of the product’s budget, and mainly focusing on the SME sector.
The Bulgarian Development Bank also offers on-lending financing under the "Investment Plan for Europe" in cooperation with 5 commercial banks, and is in the process of signing contracts with the respective project's partners.
The scheme is funded jointly by BDB, the European Investment Bank and the European Fund for Strategic Investments under the “Investment Plan for Europe”. At the end of July 2018, Bulgaria was ranked among the top 4 EU countries in terms of expected funds utilization in relation to gross domestic product (GDP).