First Loss Portfolio Guarantees under the OPHRD

Financial resources

  • public resources in the amount of BGN 5 million;
  • expected volume of loans to final recipients of BGN 25 million.

Goals of the instrument

  • improve access to financing for seeding and development of start-ups and social enterprises with a high-risk profile;
  • support social entrepreneurship;
  • promote entrepreneurship among vulnerable groups.

Final recipients

  • companies and self-employed persons registered not more than 5 years ago, including enterprises whose owners are from vulnerable groups such as unemployed for more than 6 months, young people aged 29 or less, people with disabilities;
  • social enterprises.

Type of financing

  • investment loans or working capital loans in an amount of up to EUR 50 000 or BGN 97 791;
  • relaxed loan terms such as a lower interest rate, lower collateral requirements, option for a grace period;
  • a repayment term of up to 10 years;
  • for the purpose of acquisition of tangible and non-tangible assets for business development or expansion of activities of the enterprise or the self-employed person; or to cover other costs linked to the core business operations.
  • guarantees from the Fund of Funds in an amount of up to 80% per individual loan made capped at 25% of losses on the guaranteed portfolio.

Source of the public resources

Operational Programme Human Resources Development 2014 — 2020 co-financed from the European Social Fund

Current stage of the instrument: active on the market.

Financial intermediary

UniCredit Bulbank

BDB Microfinancing