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 Small and Medium-Sized Enterprises.
What investments meet the requirements for financing?
Every investment in the country performed by an existing, newly established or privatized enterprise, which needs medium-term or long-term financing, such as:
- purchase of land and buildings; office and store equipment;
- purchase of machines, equipment and vehicles (including used);
- purchase of non-tangible assets (licenses, patents);
- turnover capital as part of the financed investment loan.
What amount can be provided under each project?
Up to 75% of the value of the investment project can be financed under the programme for financing of small and medium-sized enterprises. The amount of own participation of the borrower in the financing should be minimum 25% (VAT exclusive) of its value. The loans have a minimum amount of BGN 30 000 and maximum BGN 400 000.
The following do not meet the requirements for financing: trading in real estate; purchase and sale of securities or other financial transactions (portfolio investments); purchase of minority share and packages of shares of enterprises.
Loan conditions
The loans are extended for a period of repayment of 1 to 4 years.
Grace period up to 1 year.
Interest rate – according to the risks of the project and the term of return on 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.
Assets that are subject of the investment project are also acceptable as collateral of the loan.
