Financial support of the micro, small and medium-sized enterprises (SMEs) affected by the COVID-19

  • 06/05/2020 17:53
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The Government of the Republic of Bulgaria has approved the Portfolio Guarantee Program to support the liquidity of micro, small and medium-sized enterprises (SMEs) affected by the COVID-19. The implementation of the Program is entrusted to  the Bulgarian Development Bank AD, which has already signed agreements with the first four credit institutions that begin work on a Program to ensure interest-free loans. These are Investbank, International Asset Bank, Municipal Bank and First Investment Bank.

The implementation of the Program is financially secured with BGN 500 million. The Program is open to all sectors. It is applied to the whole territory of Bulgaria, and it is expected that the sectors most affected by the crisis will benefit – these are mainly trade, services, transport, tourism, hotel and restaurant businesses, logistics, export and others. Eligible borrowers are micro, small and medium-sized enterprises in accordance with the Law on SMEs registered in Bulgaria, which have adverse economic consequences from the spread of the COVID-19 epidemic.

The eligibility criteria are:

  • Decrease in turnover from the first quarter of 2020 compared to the first quarter of 2019 (based on the financial statements of the company);

 

  • Existence of receivables from customers that have not been paid / amounts not paid to suppliers after 01.03.2020 (based on the financial statements of the company);

 

  • Discontinued import supplies required for the enterprise's activity - after 01.01.2020, export contracts canceled (based on certificates and documents submitted by the company);

 

  • Sickness and self-isolation of employees, overall reduction in the number of employees, closed production facilities, premises and offices (based on certificates and documents provided by the company.

 

The deadline for applying under the program is 31.12.2020. The maximum amount of credit to SMEs is up to BGN 300,000 for working capital, and the grace period for payment of interest and principal amount is up to 36 months.

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