18.02.2021

Cheap loans are granted to companies in the villages

The Fund of Funds opens the procedure for selecting financial intermediaries to manage the new "Rural Finance" instrument. The funds are provided by the Rural Development Program 2014-2020, co-financed by the European Agricultural Fund for Rural Development. The budget of the financial instrument is BGN 38.3 million, divided into three separate items. After the completion of the procedure for selection of intermediaries, low-interest loans will be available to farmers and other businesses in rural areas.

Farmers will be able to use financing up to BGN 2 million, and the right to a loan on easy terms will also have enterprises engaged in non-agricultural activities in rural areas, including production, trade, crafts, all kinds of services such as accounting, utilities, household, repair, veterinary, information, care for the elderly, etc. The money can be used for both investments and working capital.

The Fund of Funds will co-finance two types of low-interest loans: supplementing already received grants for projects (participation of FF up to 50% of the loan amount) and individual loans (participation of FF up to 70% of the loan amount).

The preferential conditions will include lower than market interest rates, easier conditions for application, reduction of collateral requirements, extended grace period, easier access to financial resources of specific target groups (small farms, young farmers). It is expected that the envisaged funds will support at least 130 enterprises engaged in agriculture or processing of agricultural products, as well as carrying out non-agricultural activities in rural areas.