The instrument is financed by Operational Programme Human Resources Development (OPHRD) 2014—2020 and co-financed by the European Social Fund.
The portfolio guarantee will cover up to 80 % of the credit risk assumed by the financial intermediary under each microloan included in the guarantee portfolio up to the loss cap at the portfolio level. The microloans to be provided will target start-ups (including start-ups established by persons from vulnerable groups (persons who have been unemployed for more than 6 months, persons with disabilities, and young people up to the age of 29 years) and social enterprises.
The funds will be disbursed to finance activities relating to the acquisition of tangible and intangible assets; working capital for the development and expansion of the activity of the company or self-employed individual; the development and improvement of the skills of workers or employees or of the entrepreneur in the case of self-employment.
The total budget of the financial instrument is BGN 20 mln. and the microloans expected to be extended to final beneficiaries—BGN 100 mln., with the maximum loan to be extended to eligible final recipient in the amount of BGN 97 791 or EUR 50 000.
The current stage of the instrument: On 19 December 2019 initial offers were received from UniCredit Bulbank with respect to three sub-funds/lots/positions of the instrument. Review of submitted documentation and negotiations are pending.