Fibank (First Investment Bank) is one of the financial institutions in Bulgaria to join the Government’s announced Recovery Program. Previously, we published that Postbank joined that Program as well.
From the 1st of July 2021, small and medium-sized enterprises will be able to receive financing from the bank to overcome the consequences of COVID-19, repositioning, and expansion of the activity. Under the program, banks are expected to provide loans to small and medium-sized businesses totaling 2,5 billion BGN (approx. 1,28 billion EUR).
Each loan is secured by the Fund of Funds (FF) up to 80%. The funds were provided by the FFF under the Operational Program “Innovation and Competitiveness” (OPIC) 2014-2020, co-financed by the European Regional Development Fund.
The main advantages of the program, implemented in partnership with banks are the following:
- Access to business loans for companies with a minimum of 3-year history;
- No collateral is required; it’s an unsecured loan, except for personal guarantees provided by the owners;
- Obtaining approval and opportunity for disbursement in a short time;
- Opportunity to negotiate a 12-month grace period;
- Rescheduling of the principal payment up to 84 months;
- Minimization of the administrative burden for the customers;
- Opportunity to receive financing up to 3 million BGN (approx. 1 534 580 EUR), but not more than 70% of 2019 or 2020 YY turnover (the higest one); up to the de minimis guaarntee limit.
Source: Bank’s press release from July 01, 2021