18.10.2021 BACB is first to begin financing under BDB’s updated program to assist companies affected by the pandemic

The Bulgarian-American Credit Bank (BACB) is the first bank that will grant loans under the BDB’s updated guarantee program in support of micro-, small, and medium-sized enterprises affected by the COVID-19 pandemic. The Recovery Program is part of the government’s anti-crisis measures aimed to overcome the effects of the pandemic.

BACB starts accepting financing requests under the updated terms today, October 18.

The updated guarantee program allows Bulgarian companies to apply with shorter approval periods and lower security requirements. The financing may be up to BGN 3 million, regardless of company size, and BDB will cover up to 80% of the loan principal in accordance with the terms stated in the program. The loan repayment period will be 7 years, with a possibility for an up to 3-year grace period.

Companies will now receive information whether they have been approved for a loan up to 5 work days after submitting all required documents, and utilization of the funds will be possible within 10 work days. To be granted support under the program, companies need to have at least 3 completed financial years with sales revenue, at least one of which needs to be profitable.

The guarantee instrument may be used by micro-, small, and medium-sized companies and the so-called small companies with a medium market capitalization (small mid-caps – with up to 499 employees) of all economic sectors. The condition is that they have ongoing business activities and are registered in the Republic of Bulgaria, and also to be impacted by negative economic consequences from the spread of the pandemic.

The required security will be personal guarantees by the beneficial owners of the company or by related entities, as well as, if applicable, pledges of account receivables under the Obligations and Contracts Act (OCA), the Registered Pledges Act (RPA) and under a financial security contract in accordance with the Financial Security Contracts Act (FSCA).

The application deadline for the anti-crisis measure is up to 20 December 2021.

Since the start of the BDB guarantee program in May 2020, loans for over BGN 310 million have been guaranteed in support of businesses.

When the program started, BACB was once again the first bank that began offering remedial financing for companies during the emergency situation, and from the beginning of June 2020 to the end of September 2021, there are 184 loans amounting to over BGN 40.3 million granted to companies employing over 4,055 people.