27.05.2021

THEY GRANT LOW-INTEREST LOANS TO START-UPS AND SOCIAL ENTERPRISES

The Fund of Funds (FF) has launched a third procedure for the selection of financial intermediaries for the implementation of the instrument "Microcredit with shared risk".

The resource is under the Operational Program "Human Resources Development 2014-2020" (OPHRD), co-financed by the European Social Fund. The total budget of BGN 9 million is divided into three separate items, with a resource of BGN 1 million, BGN 2 million and BGN 6 million, respectively.

The financial instrument aims to improve access to finance for start-ups, including people from certain vulnerable groups (unemployed over 6 months, young people under 29 and people with disabilities) and social enterprises.

The funds will be provided in the form of microloans in the amount of BGN 5,000 to 48,895 or their equivalent in EUR. The repayment period is up to 10 years and a grace period of up to 2 years for the loan principal.

The instrument will attract additional private capital aimed at achieving public labor market policies. In the new procedure the scope of the final recipients has been expanded as eligible enterprises are also those registered up to 5 years before the date of application. The additional reliefs introduced are aimed at overcoming the consequences of the COVID-19 crisis.

The maximum financing from the Fund of Funds is up to 90% of the amount of each individual loan. Financial intermediaries should provide the remaining 10%. The funds from the FNF have zero interest rates, and the co-financing from the intermediary is at market levels, and the final recipients will pay a weighted average interest rate, which is significantly more favorable than the market interest rate.

Acquisition of tangible and intangible assets will be financed through "Microcredit with shared risk"; working capital in connection with the development/expansion of activities of the enterprise or the self-employed person; the development and improvement of the skills of the employees of the micro-enterprise or of the entrepreneur in case of self-employment.

For additional information and questions about the started procedure you can contact the team of the Fund of Funds by e-mail: office@fmfib.bg.