site.btaCouncil of Europe, Bulgarian Development Banks Launch New Loan Programme for SMEs

The Bulgarian Development Bank (BDB), in partnership with the Council of Europe Development Bank (CEB), is launching a new loan programme for supporting micro-, small and medium-sized enterprises (SMEs), including family-owned businesses and craftspeople, the BDB said on Wednesday.

The programme aims to provide long-term capital access to businesses that often fall outside the scope of conventional financing and face tighter credit constraints compared to larger companies. According to BDB, the initiative will also support job creation and retention, particularly in regions with high unemployment.

The financial instrument includes investment and working capital loans of up to EUR 2.5 million, offered at preferential interest rates. Working capital loans will have a maturity of between 1.5 and 4 years. Investment loans will carry a repayment period starting from 5 years and extending up to 10 years, with a flexible disbursement schedule tailored to the specifics of each investment. A grace period of up to two years is also available for such projects.

According to the European Parliament and the European Commission, SMEs represent 99% of all enterprises in the European Union (EU). An analysis of the sector shows there are around 17 million family-owned businesses in Europe, providing 40% to 50% of private-sector jobs and generating half of the EU’s GDP, BDB added.

BDB and CEB have been partners for over 20 years. Their first joint credit line was signed in 2003. To date, the two institutions have implemented five programmes focused on financing SMEs, promoting employment, and improving energy efficiency in Bulgaria. According to BDB, the total value of the agreed financing exceeds EUR 375 million, invested across various sectors of the economy.