European and national funding programs

Allianz Bank Bulgaria AD and the National Guarantee Fund EAD have once again entered into an Agreement for guaranteeing a portfolio of loans and bank guarantees.

1/ What is it?

The main objective is to facilitate access to financing for small and medium-sized enterprises through a risk-sharing mechanism. The guaranteed amount is up to 50% of the loan/bank guarantee amount.

Loans for:

• Investment projects/intentions;

• Working capital needs;

• Bank guarantees.

2/ Who is the programme intended for?

Micro, small and medium-sized enterprises within the meaning of the SME Act, including agricultural producers, whose ultimate controlling owner is not an entity registered in jurisdictions with a preferential tax regime.

3/ Parameters and conditions

Currency: EUR

Loan amount:

• Minimum loan/bank guarantee amount – no restriction;

• Maximum loan/bank guarantee amount – EUR 2,500,000;

• Maximum guarantee amount per borrower and related parties – EUR 1,000,000.

Loan term:

• Working capital loans with a repayment schedule – up to 72 months;

• Revolving loans – 12 months with an option for renewal;

• Investment loans – up to 180 months depending on the investment.

4/ Application deadline:

• 30 June 2028

Allianz Bank Bulgaria AD and the National Guarantee Fund EAD have entered into an Agreement for the issuance of guarantees on loans to supplement collateral for SMEs approved for support under the Rural Development Programme 2007–2013 and 2014–2020, as well as enterprises in the “Livestock” and “Crop Production” sectors.

1/ What is it?

The main objective is to facilitate access to financing for small and medium-sized enterprises through a risk-sharing mechanism for the realisation of investments related to approved projects under the Rural Development Programme of the Republic of Bulgaria (2014–2020), expenses related to the implementation of projects under the Rural Development Programme of the Republic of Bulgaria (2007–2013), as well as financing of investment or working capital needs of enterprises in the “Livestock” and “Crop Production” sectors.

2/ Who is it intended for?

Micro, small and medium-sized enterprises within the meaning of the SME Act, including agricultural producers, whose ultimate controlling owner is not an entity registered in an offshore zone.

3/ Parameters and conditions:

• Guarantee limit per borrower and related parties – up to EUR 1.5 million.

• Maximum guarantee percentage per loan – 50%.

Allianz Bank Bulgaria AD and the National Guarantee Fund EAD have entered into an Agreement for the issuance of guarantees on loans to supplement collateral for SMEs approved for support under the Rural Development Programme 2007–2013 and 2014–2020, as well as enterprises in the “Livestock” and “Crop Production” sectors.

1/ What is it?

The main objective is to facilitate access to financing for small and medium-sized enterprises through a risk-sharing mechanism for the realisation of investments related to approved projects under the Rural Development Programme of the Republic of Bulgaria (2014–2020), expenses related to the implementation of projects under the Rural Development Programme of the Republic of Bulgaria (2007–2013), as well as financing of investment or working capital needs of enterprises in the “Livestock” and “Crop Production” sectors.

2/ Who is it intended for?

Micro, small and medium-sized enterprises within the meaning of the SME Act, including agricultural producers, whose ultimate controlling owner is not an entity registered in an offshore zone.

3/ Parameters and conditions:

• Guarantee limit per borrower and related parties – up to EUR 1.5 million.

• Maximum guarantee percentage per loan – 50%.

Allianz Bank Bulgaria is expanding lending to small and medium-sized enterprises and mid-cap companies in Bulgaria, thanks to a new agreement with the European Investment Bank Group.

The EIB Group’s support will help reduce credit risk, enabling the bank to extend approximately €340 million in new loans to small businesses and mid-cap companies over a three-year period.

The EIB is the long-term lending institution of the European Union, owned by its Member States. It finances investments that support EU policy objectives. EIB projects promote competitiveness, drive innovation, foster sustainable development, strengthen social and territorial cohesion, and support a just and rapid transition to carbon neutrality.

Additional information on the EIB Group’s support for SMEs and mid-cap companies is available on the EIB website (www.eib.org).

1/ What does the agreement with the EIB Group entail?

Under the agreement, Allianz Bank commits to providing approximately €340 million in new financing over the next three years. Over €80 million of the new loans will be directed towards climate and environmental projects, thereby supporting the green transition and economic growth in Bulgaria.

The minimum loan term is 2 years (the actual duration will depend on the economic and technical characteristics of the project), and financing can range from very small projects to investments with a maximum value of €25 million.

2/ Who is eligible to apply for a loan under the Agreement?

• SMEs based in an EU Member State with fewer than 250 employees on a consolidated basis prior to the investment;

• Mid-cap companies (MidCaps) headquartered in an EU Member State with fewer than 3,000 employees on a consolidated basis prior to the investment;

• Most economic sectors and activities are eligible, with the exception of: the manufacture of weapons and ammunition, explosives, equipment or infrastructure specifically designed for military use, and equipment or infrastructure that restricts individual rights and freedoms; activities with adverse environmental impacts; activities considered ethically or morally unacceptable (human trafficking, animal testing, human cloning research); activities prohibited by national legislation (genetically modified organisms, nuclear energy, etc.); gambling; tobacco processing industries; speculative real estate transactions; financial transactions; and consumer finance.

3/ What can the loan be used for?

The loan can be used to finance investments and expenditures:

• Tangible investments: purchase, renovation, or expansion of tangible assets, with certain restrictions on land purchases.

• Intangible investments: in particular, costs related to research and development, acquisition of process licences and software, securing management continuity to protect business operations (costs not exceeding €5 million).

• Medium- and long-term working capital financing to support the ongoing operations of SMEs or MidCaps.

4/ What are the benefits for your business?

• You may obtain more favourable interest rate conditions compared to standard business lending terms.

• You can negotiate the loan term or repayment frequency in line with your business circumstances and cash flow requirements.

5/ What are the additional conditions?

• The EIB reserves the right to visit and inspect the offices, production facilities, and other premises related to the Borrower’s activities; and

• The Bank may provide information about your project and company to the EIB.

If you are interested, please contact your dedicated corporate relationship manager or visit your nearest bank branch to discuss the financing options available for your business under the EIB’s “SME Loans” or “Mid-Cap Loans” schemes.