18.10.2021

BACB WILL PROVIDE LOANS UNDER THE RENEWED GUARANTEE PROGRAM OF THE BULGARIAN DEVELOPMENT BANK

The Bulgarian-American Credit Bank (BACB) is the first bank to provide loans under the renewed guarantee program of Bulgarian Development Bank (BDB) in support of micro, small and medium enterprises affected by the COVID-19 pandemic, BDB announced.

BACB will start accepting requests for funding under the renewed conditions as of today, October 18.

The renewed warranty program allows Bulgarian companies to apply for shorter approval deadlines and relaxed collateral requirements.

The financing can be up to BGN 3 million, regardless of the size of the company, and BDB will cover up to 80 percent of the loan principal under the conditions specified in the program.

The loan repayment period is up to 7 years with the possibility of a grace period of up to 3 years.

Companies will now have information on whether they are approved for lending within 5 working days after providing all the necessary documents, and the absorption of funds will be possible within 10 working days.

To receive financial support under the program, companies must have completed at least 3 financial years with sales revenue, at least one of which has ended with a profit.

Micro, small and medium-sized companies from all sectors of the economy can benefit from the guarantee instrument. The condition is to carry out economic activity and to be registered in Bulgaria, as well as to suffer adverse economic consequences from the spread of the pandemic.

As security, personal guarantees are required from the beneficial owners of the companies or from related parties, as well as, if applicable, pledges of receivables from accounts under the Obligations and Contracts Act, the Special Pledges Act and through a financial collateral agreement under the Contracts Act. for financial security.

The deadline for applying for the anti-crisis measure is December 20 this year.

Since the launch of the BDB's guarantee program in May 2020, business support loans of over BGN 310 million have been guaranteed.