First Loss Portfolio Guarantees COVID-19

Financial resources

  • public resources* in the amount of BGN 157.9 million;

*The resources have been reallocated from the terminated financial instrument for Small Business Financing and the re-designed financial instrument for First Loss Portfolio Guarantees for Energy Efficiency and Innovation.

  • additional resources from intermediary banks.

Goal of the instrument

Facilitate access of businesses to credit to enable them to continue operations, including to meet their liquidity requirements and/or overcome financial difficulties caused by the COVID-19 crisis.

Final recipients

Bulgarian small and medium-sized enterprises

Type of financing

  • a loan guarantee on a portfolio of new loans to small and medium-sized enterprises that do not have sufficient surety but need support in the conditions of the pandemic;
  • a possibility to combine a guarantee instrument and interest support in the framework of a single operation;
  • preferential interest rates, relaxed collateral requirements and lower administrative burden;
  • an option for a grace period of up to 2 years on the loan;
  • an option to repay interest after the first year at a rate of up to 4%.

Source of the public resources

Operational Programme Innovation and Competitiveness 2014 — 2020 co-financed from the European Regional Development Fund

Current stage of the instrument in the process of being structured.

Financial intermediaries

Bulgarian – American Credit Bank

Tokuda Bank

First Investment Bank

D Bank

Raiffeisenbank Bulgaria


DSK Bank


Detailed information on the selection procedure for financial intermediaries for the First Loss Portfolio Guarantee to Mitigate the Consequences of COVID-19 and the relevant documentation is available in the Buyer Profile section.