12.07.2022 BDB Leasing extends its 0% deductible project financing program
More micro, small and medium-sized enterprises are applying for funding with softer terms and longer repayment periods
Due to increased interest, the Bulgarian Development Bank's subsidiary BDB Leasing is extending until 31 December 2022 its program to support micro, small and medium-sized enterprises, implemented in partnership with the Pan-European Guarantee Fund and the European Investment Fund.
The aim of the program, which started in mid-2021, is to make it easier for businesses to overcome the negative effects of the pandemic. Through the program, BDB Leasing is lending up to BGN 5 million on soft terms.
The funds are intended for the purchase of new and used production machinery and equipment, trucks and vehicles, construction and agricultural equipment. The deductible required is 0% for leasing of vehicles and 5% for other types of assets.
The repayment periods are also preferential – depending on the type of asset purchased they vary between 1 and 8 years.
So far, 91 leases have been signed under the BDB Leasing program for a total value of BGN 23,839,606, funding projects in the field of transport, agriculture, manufacturing, medical services, construction, wood processing, etc.
The funding is provided under the EGF, implemented by the European Investment Fund (EIF) with the financial support of the EU Member States, which contribute to the Pan-European Guarantee Fund (PEGF).
The Pan-European Guarantee Fund has been set up as part of an overall package of measures by the EU and the EIB Group to mitigate the economic impact of the COVID-19 pandemic. Its final beneficiaries are mainly small and medium-sized businesses throughout the EU and public enterprises providing essential services such as healthcare, medical research, etc. Total funding is expected to reach €200 billion.
The BDB Group has been approved as financial intermediary for the Fund's guarantee program, under which its products have been set up.
