12.10.2021

THE BULGARIAN DEVELOPMENT BANK OFFERS LOANS TO ENTREPRENEURS FROM VULNERABLE GROUPS

The Bulgarian Development Bank will support the representatives of vulnerable groups who want to start their own business. BDB Microfinance will lend to companies and the self-employed, including the unemployed, young people and people with disabilities. The product is also aimed at supporting social enterprises - the so-called mission businesses, the bank said.

The program will enable small and medium-sized enterprises to use an investment or working capital loan of up to EUR 50,000 (BGN 97,791) on favorable terms and with 25% lower interest rates compared to the standard conditions of BDB. The repayment period is longer than similar products on the financial market.

The guarantee resource under the BDB Microfinance program is BGN 1 million, and the volume of loans to final recipients is expected to reach BGN 5 million.

The support aims to improve access to finance for start-ups and social enterprises, as well as to support social entrepreneurship in the acquisition of tangible and intangible assets for the development or expansion of activities.

The subsidiary of BDB has entered into a guarantee agreement for the use of a portfolio guarantee with a ceiling on losses for microfinance with the Fund Manager of Financial Instruments in Bulgaria EAD (the Fund of Funds). The resource is under the Operational Program "Human Resources Development 2014-2020" (OPHRD), co-financed by the European Social Fund.

Among the most important goods created by these companies is social capital - solving social problems, job creation, and at the same time income for the entrepreneur. Social enterprises develop and implement innovations that stimulate social and economic development, offer new goods and public services and change stereotypes in the market and non-market environment. The new product of BDB Microfinance is designed for this specific segment of the country's economy, which usually remains out of sight of commercial banks and general measures and programs.