13.07.2021 BDB Leasing signs guarantee agreement with EIF under Pan-European Guarantee Fund programme

BDB Leasing has signed a guarantee agreement with the European Investment Fund (EIF) under the Pan-European Guarantee Fund programme in response to the Covid-19 pandemic for direct financing of small and medium-sized enterprises under facilitated conditions with a guarantee from the EIF. The Pan-European Guarantee Fund programme was set up by the European Union in response to the economic crisis caused by the Covid-19 pandemic and provides guarantees to financial institutions from EU member states to support the recovery of companies and sectors affected by the pandemic.

The guarantee program focuses exclusively on small and medium-sized enterprises. The participation of BDB Leasing in the program will allow the company to provide lease financing to small and medium-sized enterprises subject to lower deductible requirements, longer repayment periods, as well as to finance companies that have a shorter business history. The main parameters of the programme are as follows:

• Lessees – micro, small and medium-sized enterprises, as provided for by the SME Act;
• Eligible lease assets – new and used production machinery and equipment, trucks and vehicles (over 3.5 tons), construction and agricultural machinery. The assets must be used for the economic activity of the company;
• Deductible requirement for the client:
• • 0% deductible for vehicle leases;
  • 5% deductible for leases of all other types of assets.
• Term of financing – from 12 to 96 months depending on the age and type of leased asset.
• Maximum funded amount under the programme: BGN 2,200,000.
• Deadline to add leases to the guaranteed portfolio: by 31 December 2021.
• Guarantee provided by EIF under the programme – up to 70% of the amount of lease financing.
• The funding is provided by the EGF Guarantee Facility, implemented by the European Investment Fund (EIF) with the financial support of the Member States of the European Union, which contribute to the Pan-European Guarantee Fund (EGF). For more information see here

For more information about the parameters of the programme, requirements for lessees and application documents, please contact us at 02 4529 440 or 02 4529 444 or e-mail us at: office-leasing@bdbank.bg