EaSI Guarantee Facility Instrument

Loan beneficiaries: Starting microenterprises and ones under development; enterprises that hire persons from vulnerable groups.

Requirements to the borrower:

• A) To be a vulnerable person who:
  • has lost or is at risk of losing their employment;
  • has had difficulties in their entry or re-entry on the labor market;
  • is at risk of social exclusion or is socially excluded;
  • is in unequal position in terms of access to conventional lending markets;
  • wishes to create or develop their own microenterprise, including for self-employment;
• (B) a microenterprise in the startup or development phase; including a microenterprise with one or more employees of the types specified in item A) above;
• has been established and operates in Bulgaria;
• is not bankrupt or undergoing bankruptcy proceedings;
• complies with the national legislation when carrying out its activities and has no illegal activity;
• does not have a substantial part (over 5%) of its activities in one or more restricted sectors – production and trade with tobacco and alcohol, gambling, human cloning, arms manufacturing and trade.

* Enterprises who have operated for less than 12 months before the loan application date are considered as starting.

Permissible transactions:

• investment loan, working capital loan, facility, leasing;
• the transaction is new and has been concluded until 30 June 2024 or an earlier date on which the transaction portfolio for the Product is full;
• maximum transaction amount: up to EUR 25,000 or BGN 48,895.75;
• maximum aid for one borrower – up to EUR 25,000 or BGN 48,895.75;
• in connection with the COVID-19 measures, it is allowed for one borrower to apply and receive funding for up to 2 transactions with a maximum amount of EUR 25,000. This exception shall be valid until 30 June 2021.

Repayment period:

• at least 3 months and no more than 120 months; with a fixed repayment plan;
• maximum repayment period for a working capital loan – 72 months;

Goal of the financing – development of an enterprise and business activities; creating a new enterprise

Financial advantages:

• Security – personal guarantee;
• Management fee – 0.5% on the debt under the transaction; other fees and commissions in accordance with the BDB Microfinancing Tariff

Application:

• Through the online platform
• At the BDB Microfinancing

Тhe supported financing benefits from the support of the European Union under the Guarantee Facility established under Regulation (EU) No 1296/2013 of the European Parliament and the Council establishing a Union Programme for Employment and Social Innovation (“EaSI”).

More information about EaSI Guarantee Instrument you can find here