Loans, guaranteed by the Bulgarian Development Bank

Advantages

Fast and easy access to financing
Alleviated collateral requirements
Better interest rates
Admissible involvement of existing investment and working capital loans

Terms and Conditions

Target Group	Small, medium and large enterprises adversely impacted, in terms of economic consequences, by the spread of the COVID-19 pandemic, after 31 December 2019 and meeting at least one of the conditions below: Decline in turnover after Q1 of Y2020 y/y. Existence of outstanding receivables from clients, or payables to suppliers, after 01 March 2020. Suspended import deliveries, needed for the company’s activities - after 01 January 2020, canceled export agreements. Diagnosed or self-isolated staff, total reduction in the workforce, closed production facilities and offices. Existence of other circumstances, accepted by UBB as evidence for the hardship, faced by a company due to the COVID-19 crisis.
Purpose	Investment loans Working capital loans
Currency	BGN/Euro
Interest rate	Preferential in contrast to the annual interest, which UBB would otherwise collect under the loan had the latter not been guaranteed under the programme with BDB AD.
Fees	As per UBB Fees and Commissions’ Tariff for Business Clients
Guarantee fee	Each Borrower will pay an annual guarantee fee, charged by the Bank and due to the BDB AD for the guarantee, provided by the latter.
Amount	The maximum amount of the granted financing cannot exceed: for SMEs: BGN 1 000 000 to a Borrower and its related parties, on a Programme level. for Large businesses: BGN 2 000 000 to a Borrower and its related parties, on a Programme level.
Tenor	Maximum 6 years but no later than 30.06.2027
Collateral	No more than 50% of the value, approved by the Bank
BDB AD Guarantee coverage	80%

Required Documents

Decision of the company’s competent body for obtaining a loan and providing collateral for it
Balance Sheet, Profit and Loss Account and a Tax Return for the last year
Collateral ownership documents - copies of the ID cards of the company’s representative - borrower/co-debtor/pledgors/mortgagors
Certificate of existence/lack of liabilities, issued by the revenue office under Article 87, Para.6 of the Tax Insurance Procedure Code
Declaration of Relatedness with other entities