What guarantees are issued by the Guarantee Fund
The MGFSME covers part of the credit risk and secures up to 50% of the principal amount of the loan or up to BGN 100 000
Requirements for SMEs to obtain guarantee support from SFGSP:
To meet the criteria for small and medium-sized enterprises under the SME Act;
Their headquarters shall be on the territory of Sofia Municipality or their business project shall be realized on the territory of the municipality;
Have collateral on the loan with a liquidation value estimated by the BANK for at least 60% of the value of the loan.
Way of issuing guarantees
- After detailed analysis of the project by the MGFSME, the company may receive a letter of approval, in which the Fund states that meets the formal requirements needed for a future issue of a guarantee by MGFSME. The guarantee may be issued on condition that a credit is provided by the partner bank.
- A partner bank makes a proposal to the MGFSME to issue a guarantee for a credit approved already by the bank