The Bulgarian Development Bank, INSME member, will offer shorter loan approval time and reduced collateral requirements under its guarantee program in support of businesses affected by the COVID-19 pandemic. This change to the Recovery Program, backed by a decision of the Council of Ministers, will enter into force after a positive opinion from the European Commission.
Under the scheme, companies will know in five business days whether they are approved for a loan, and the funds will be available to use within ten business days. The maximum funding will now be up to BGN 3 million, regardless of the size of the business, and BDB will cover up to 80% of the loan principal under the terms and conditions of the program. The loan repayment period is up to seven years with a possible grace period of up to three years.
Micro, small and medium-sized businesses (MSMEs) from all economic sectors can benefit from this funding instrument, on the condition they have their economic activities and place of registration in the Republic of Bulgaria and to suffer adverse economic consequences from the spread of the pandemic. To benefit from this financial support, companies must have at least three complete financial years, turning a profit in at least one of them.
The deadline to apply for BDB’s renewed guarantee program is December 20, 2021.
More information is available here.