Activities and objectives of MGFSME

Objectives of MGFSME are directed towards the implementation of the policy of Sofia Municipality to assist small and medium business in its territory by providing financial institutions with guarantees on loans extended to SMEs registered and/or developing their activities at the territory of Sofia Municipality.

Municipal Guarantee Fund guarantees loans, extended to companies which have their seat in the territory of Sofia Municipality or their business project has to be implemented in Sofia Municipality. The Fund guarantees up to 50% of the principal of the SME loans and provides banks with guarantees up to 100 000 BGN regardless of the loan amount. 

Fund’s objective is to facilitate the access of SMEs to credit institutions and EU funds as well as to provide SMEs with consulting services concerning the possibilities for applying to Operational Programs of EU. MGFSME keeps its works within the program for the activities of the Fund adopted by the Sofia Municipal Council. In the process of preparing its program MGFSME took into consideration the priorities of Sofia Municipality and the necessity to implement the policy aimed at supporting the small business in the territory of Sofia Municipality.   

 The objectives of MGFSME are achieved through entry of agreements with commercial banks and other financial institutions, which exercise special programs for borrowing to Small and Medium companies.



Providing with guarantees by MGFSME on loans extended to SMEs is done in two ways:  

  • MGFSME directs companies to bank-partners with an approval letter in which the Fund notifies the banks that the company covers the formal conditions for providing of a MGFSME guarantee on the bank’s loan;
  • Bank-partners address to the Fund a proposal for guarantee support.

Requirements to SMEs for undertaking a guarantee support.

Companies which apply for guarantee support by the Fund should meet the following requirements:

  • The seat of the company shall be in the territory of Sofia Municipality;
  • The business project has to be implemented in Sofia Municipality;
  • The company fulfills the requirements and criteria for SMEs settled in the Law for Small and Medium enterprises;
  • The company shall dispose of collateral on the loan which covers minimum 60% of the loan principal.


Priorities for supporting SMEs

The Municipal Guarantee Fund, in compliance with all requirements, assign a priority to projects of:
1. Depending on the category of entrepreneurs:

  • women-entrepreneurs;
  • disabled persons;
  • young entrepreneurs;

2. Depending on the type of projects for funding :

  • SMEs beneficiaries to the European Union and other specialized programs for SME financing by international financial institutions;
  • business development in the peripheral areas and districts of Sofia Municipality;
  • small family business;
  • transport and transport services for citizens;
  • services provided by physicians, dentists, therapists and psychotherapists;
  • leisure - sports, cultural and youth activities;
  • export-oriented industries;
  • production of environmentally friendly products, machinery and equipment, contributing to conservation and environmental improvement;
  • transfer of know-how and training of staff.


Request for providing with a guarantee

You can download the form for Request for providing with a guarantee from here


Consulting services

MGFSME provides companies with consulting services in the following areas:

  • Services connected to development of projects for applying to opened schemes of Operational Programs of EU;
  • Accounting Services;
  • Legal Services;
  • Management services
  • Services, connected to obtaining international certificates ISO 9001, 14001, assigning primary credit rating etc.