The Fund of Funds launched a procedure for the selection of a financial intermediary for micro lending guarantees
The Fund of Funds launched a procedure for the selection of financial intermediaries to implement the First Loss Portfolio Guarantees for Micro-Lending financial instrument. It is funded under the Operational Programme for Human Resources Development 2014—2020 (OPHRD) co-financed by the European Social Fund.
The portfolio guarantee covers up to 80 % of the credit risk assumed by the financial intermediary on each microloan included in the guaranteed portfolio. Eligible financial intermediaries include credit and financial institutions that are licensed to offer financing in the form of lines of credit, loans and/or leases on the territory of the Republic of Bulgaria.
The Fund of Funds will select financial intermediaries which will, in turn, make microloans to eligible final recipients, notably start-ups (including owned by persons from vulnerable groups) and social enterprises. The purpose of implementing this financial instrument is to improve access to financing for target groups of final recipients by making financing available at better-than-market interest rates and/or loan security requirements.
The microloans are designed to finance acquisitions of tangible and non-tangible assets; working capital needs relating to business development or scale-up of the business or the self-employed person; development and up-skilling of employees or, in the case of a self-employed person, the entrepreneur.
Interested financial intermediaries may apply for participation in the selection procedure by 18:00 on 31 March 2021.
The full set of application documents is available at https://www.fmfib.bg/bg/buyer/procedure/59