26.11.2021

THEY LAUNCH CHEAP LOANS FOR RURAL COMPANIES

The Fund of Funds has entered into an agreement with First Investment Bank (Fibank) for the management of the financial instrument "Rural Financing".

The funds are provided by the Rural Development Program 2014-2020 (RDP), through the European Agricultural Fund for Rural Development and amount to BGN 38 million. The financial institution selected by the Fund of Funds is expected to add as much private capital to the public resource, so that the total amount of loans will exceed BGN 70 million.

The instrument is aimed at farmers and small and medium-sized enterprises developing business in rural areas, who will have the opportunity to benefit from funding under the instrument until 31 December 2023.

The loans will be provided for agricultural and non-agricultural activities in rural areas to increase the competitiveness of the agricultural sector, as well as to promote social inclusion and support for the sustainable development of agricultural holdings.

The instrument will cover both new stand-alone investments and grants to co-finance projects supported by grants with the following funding characteristics:

- low-interest loans in EUR or BGN under favorable conditions for investment purposes and working capital, which complement the investment and are related to it;

- amount of investment loans up to BGN 2 million. Complementary working capital financing up to the higher of the following values: 30% of the total investment to the respective final recipient or BGN 391,166, in compliance with the requirements and restrictions for state aid;

- repayment period up to 10 years;

- low interest rates on the financing, as no interest and management fee will be charged on the RDP funds;

- low requirement for deductible of the final recipient.

After the signing, the product will be structured under the Rural Financing Instrument by First Investment Bank and its active supply to final recipients will start.