The Bulgarian Ministry of Economy has signed an agreement with several commercial banks and now small and medium-sized businesses can apply for loans without collateral. This was announced by the Minister of Economy Kiril Petkov at a briefing on Tuesday.
Companies that have been operating for at least 3 years can apply for these loans. The loan is for up to 7 years, and the first 12 months can be requested for a grace period.
The recovery fund secures 80% of the loan, the remaining 20% is a risk for the bank.
The maximum amount is BGN 3 million for an individual loan or up to 70% of the company's revenues for 2019 or 2020, explained Minister Vassilev.