28.09.2021 BDB with a new program in support of small and medium business, creative industries and startups
The bank will provide direct loans guaranteed by the EIF
The Bulgarian Development Bank is launching a new program with the support of the Pan-European Guarantee Fund, which aims to promote investment and to reduce the negative impact of the COVID-19 pandemic. It is specifically targeted at small and medium-sized businesses, creative industries and start-ups active in manufacturing.
The new program has a volume of EUR 40 million and covers a portfolio of direct loans with lower collateral and own-participation requirements compared to the standard ones, and based on the project and business history of the applying companies.
Loans of up to BGN 500,000 shall be granted to companies with focus on creative activities, one of the most affected by the pandemic. The main advantages are the reduced collateral requirements and the minimum own participation of 10% of the requested loan.
New start-ups without a credit history that have the most difficult access to financing, can apply for loans of up to BGN 250,000, without requirement for hard collateral or solvent co-debtor. The asset purchased through the loan will serve as a collateral for the bank.
Small and medium-sized enterprises from all sectors that do not fall into the other two segments can also benefit from better loan terms: from BGN 100,000 to BGN 5 million, for a period of up to 10 years and a grace period of up to 18 months. For them there is a possibility for financing without collateral and with reduced requirements for own participation - 2 times lower than the standard terms.
Companies can now submit their applications online or on site, at the BDB office in Sofia, BDB’s HQ office in Sofia, 1, Dyakon Ignatiy St.
The provided financing shall be granted with the support of the EGF Guarantee Instrument, implemented by the European Investment Fund with the financial backing of the EU Member States contributing to the EGF".