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On-lending programme FORWARD

On-Lending financing
Partner programme of BDB for indirect funding of micro, small and medium-sized businesses

Programme budget: BGN 150 million

Purpose of the loans:

  • Working capital and investment funding of small and medium-sized companies (new loans);
  • Refunding of investment loans granted after 01.07.2014 where, due to the investment financed by the partner bank, more than 30 new jobs are open and maintained during the loan period.
  • Refunding of loans granted after 01.01.2014 may be applied for by companies realizing investments in regions with high unemployment rates such as Vidin, Montana, Razgrad, Silistra, Targovishte, Shumen, Sliven, Yambol, Pazardzhik, Smolyan and Kyustendil.

End borrowers: micro, small and medium-sized enterprises meeting the eligibility conditions within the meaning of the Small and Medium Enterprises Act, registered and conducting their business in the Republic of Bulgaria.

Maximum loan amount: BGN 3 million of its equivalent in EUR

The programme envisages an opportunity for BDB to take part of the risk on business loans granted by partner banks amounting to up to 30% of the value of the separate subloans.

Interest rate: It is determined individually by commercial banks but may not be higher than:

  • 3М EURIBOR + up to 4,7 % with risk shared by BDB
  • 3М EURIBOR + up to 4,9 % if BDB has not undertaken a guarantee commitment

Maximum rate of the security provided by SME: up to 110 % of the loan amount

BDB partner banks which have already entered agreements for the implementation of the programme:

Agreements are to be concluded with other commercial banks as well.