The funds are provided by the Operational Program “Innovation and Competitiveness” 2014-2020, under REACT-EU, due to the great interest and rapid implementation of the initial resource
Nine credit institutions have submitted documents for participation in the selection of partner banks for the implementation of the financial instrument under the new procedure. The total additional funds that the Fund of Funds will provide for the Guarantee Limit amount to BGN 96 170 000, as the interest declared by the banks significantly exceeds this amount.
The “Recovery” program enables able-bodied companies to continue to develop. The terms of the guarantee ensure that the loans are granted in a short time, with minimal administrative burden and without the need for their material security.
The Fund of funds will cover up to 50% of the credit risk of the partner banks, arising from the portfolio of new loans for small and medium enterprises (SMEs) created by each of them, with coverage of the guarantee of 80% for each individual loan.
The main advantages of the “Recovery” program are:
- Access to business loans of eligible Bulgarian SMEs with a minimum history of 3 years;
- No requirement for material security; unsecured credit, except for personal guarantees provided by the owners;
- Obtaining approval and opportunity for absorption in a short time;
- The possibility to negotiate a 12-month grace period;
- The rescheduling of the principal payment up to 84 months;
- Minimizing the administrative burden for the client;
- The possibility to receive financing up to BGN 3 million, but not more than 70% of the turnover for 2019 or 2020, depending on which of the years the turnover was higher; up to the de minimis limit.
