06.08.2020

Social enterprises and start-ups can receive microloans of up to EUR 50,000 under an instrument financed by OPHRD

Social enterprises and start-ups can receive microloans of up to EUR 50,000 with a repayment period of up to 10 years. This is possible thanks to the financial instrument "Portfolio guarantee with a ceiling on losses for microcredit", implemented by the Fund Manager of Financial Instruments in Bulgaria (the so-called Fund of Funds) with funds from the Operational Program "Human Resources Development" 2014-2020. Loans will be granted at a lower interest rate, lower collateral requirements and the possibility of a grace period. Entrepreneurs from vulnerable groups such as people with disabilities, the unemployed for more than six months and young people up to the age of 29 will also be able to take advantage of it and realize their business ideas. The funds can be used for investment and working capital financing. The loans are intended for companies that otherwise find it difficult to obtain a bank loan due to their high risk profile - lack of financial history, unfavorable credit history, insufficient income and the possibility of collateral or other negative factors.

The relaxed conditions of microcredit are possible after the Fund of Funds conducted a public tender for an intermediary, won by UniCredit Bulbank. As a result, an agreement was concluded between the bank and the Fund of Funds in the amount of BGN 5 million. Based on the guarantee coverage, the bank is expected to grant microloans with own funds worth BGN 25 million. Those wishing to obtain loans on easy terms must apply to UniCredit Bulbank.

The Fund of Funds already implements risk-sharing microcredit instruments granted by First Investment Bank, Microfund AD and SIS Credit AD.