Working capital credit for raw materials
The Bulgarian Development Bank offers small and medium-sized enterprises a new product to overcome the negative effects of the prolonged increase in inflation and rising prices of basic goods and services. The programme provides working capital loans of up to BGN 200 thousand for companies that want to purchase raw materials at current prices and thus prevent higher costs in the future. This will help them to hold down the price of the final product they produce without anticipating a recent increase. The BDB’s programme is open to companies from all sectors. The condition is that they must be viable enterprises, and companies with lower credit ratings are also eligible.
The Bulgarian Development Bank has developed a new product to support businesses with the unexpected increase of electricity prices. The bank provides businesses with the opportunity to defer their electricity costs for four consecutive months of their choice within 2022. They can apply for funding for future payments and unpaid invoices. The amount of funding will be based on the net value (after deduction of state compensation) of invoices for the electricity consumed in the period of January to December 2022, and the bank may cover up to 75% of the value of the relevant invoice. The minimum amount of the target loan is BGN 20,000 and the maximum — BGN 200,000.
Support for rose processing
The Bulgarian Development Bank has created a special product with preferential terms for Bulgarian rose processors. The purpose of the financing is to support the sector, overcome the negative effects of the Covid-19 pandemic and alleviate inflationary pressures.
Tourism Support Programme
The Bulgarian Development Bank has launched a new product aimed at some of the businesses most affected by the Covid-19 pandemic – the hotel and restaurant sector. Micro, small and medium-sized enterprises and start-up companies in these sectors can benefit from preferential financing, even if they are up to 90 days in arrears.
Green Energy Financing
The Bulgarian Development Bank finance the construction of photovoltaic power plants for business needs. The new financial product is in response to growing concern among companies about the price of electricity in Bulgaria and Europe, and increased demand for electricity. Switching businesses to solar energy is a workable solution in the context of depleting non-renewable sources and the EU's carbon neutrality targets.
Financial support for victims of COVID-19
The objective of the Programme is for BDB to provide guarantees in favor of commercial banks (see list below), which, in turn, will create portfolios of loans available to micro, small and medium-sized enterprises, as well as small mid-cap businesses, of up to 499 employees inclusive, meeting one of the following criteria: assets of up to EUR 100 million inclusive, or sales revenue of up to EUR 86 million inclusive), which have been affected by the outbreak of COVID-19 and provide liquidity for their business activities.
The Programme for interest-free loans is created to support employed and self-employed individuals, farmers, and seasonal workers who have ceased activity.