National Guarantee Fund Backs Over 5,000 SMEs with BGN 1.4 Billion in Loans, Approves BGN 2.3 Billion for the Next Three Years
Record-breaking year in support of small business financing
The National Guarantee Fund (NGF), part of the Bulgarian Development Bank Group, has closed the first three-year cycle of its SME support program with record results.
During this period, NGF guaranteed nearly 5,900 loans to over 5,200 companies, unlocking financing worth BGN 1.36 billion. Nine of Bulgaria’s leading commercial banks partnered in the program.
“In lending, value is not created directly but enabled across the economy,” said NGF’s Executive Director Todor Todorov. “Guarantee instruments have proven to reduce risk for banks, expand financing for small businesses, and strengthen their contribution to growth.”
In 2024 alone, more than 4,100 guaranteed loans totaling BGN 1.7 billion were extended to micro, small and medium-sized enterprises. Nearly 60% of these were secured through NGF, cementing its role as Bulgaria’s leading guarantee institution. The year marked a historic record for the Fund in financial results, number of transactions, and size of the guaranteed portfolio.
Unlike EU-funded guarantee schemes, NGF operates entirely with its own resources. This independence allows the Fund to design and adapt instruments faster and with greater flexibility.
“We share risks equally with commercial banks while each of us operates at its own risk. This builds trust, and the results confirm the sustainability of our model,” added Todorov.
The program also saw a shift toward working capital loans, which accounted for 56% (BGN 762 million) of the guaranteed financing — a reflection of businesses’ greater need for liquidity amid economic uncertainty and delays in EU programs. Importantly, nearly 58% of all loans required no collateral, making finance more accessible to thousands of SMEs.
In July, NGF opened a new three-year period under the same terms. Bank demand remains strong, with applications already filed for guarantees covering more than BGN 2.3 billion in new loans.
Alongside its core program, the Fund continues to run a mandate guarantee scheme with the Ministry of Agriculture and Food, supporting enterprises in agriculture, forestry, and fisheries, as well as businesses with approved projects under the 2023–2027 Rural Development Program. Since 2013, over BGN 566 million in loans have been guaranteed to some 1,200 companies in these sectors.
Established in 2008 with initial capital of BGN 80 million, the National Guarantee Fund has since enabled more than 16,500 Bulgarian micro, small and medium-sized enterprises to access financing exceeding BGN 4.5 billion.