17.12.2020

The EC has approved a BGN 78.2m scheme to support small businesses in Bulgaria

The European Commission has approved a scheme worth 78.2m levs (approximately 40m euros) to support small businesses affected by the coronavirus pandemic. The scheme is approved under the Temporary Framework for State Aid adopted by the EU.

The support will take the form of a direct grant of BGN 50,000 (approximately EUR 25,565) per beneficiary to cover part of its operating costs.

The scheme, which will be co-financed by the European Regional Development Fund, will be available to small enterprises operating in certain sectors and meeting the requirements set by Bulgaria, with an annual turnover of at least BGN 500,000 (approximately EUR 250,000) in 2019, where turnover has decreased by at least 20% in the three months of February 2020 compared to the same three months in 2019 due to the coronavirus pandemic. The aim of the measure is to help companies overcome the economic consequences of the coronavirus pandemic and maintain employment.

The Commission found that the Bulgarian scheme met the conditions set out in the Temporary Framework. In particular:

    - the aid will not exceed the ceilings for each company set out in the Temporary Framework;

    - aid under the scheme may be granted until 30 June 2021.

The non-confidential version of the decision will be published under № SA.59704 in the State Aid Register on the Commission's competition website once any data confidentiality issues have been resolved.