Financing in Rural Areas

Financial resources 

• public resources in the amount of EUR 20 million (BGN 38.3 million);
• additional resources from intermediary banks.

Goals of the instrument

• support economic development of rural areas;
• improve the competitiveness of the agricultural sector;
• restore and strengthen the forestry sector;
• promote social inclusion and support for sustainable development of small farms.

Final recipients

• agricultural producers;
• non-agricultural businesses in rural areas.

Type of financing

• Low-interest EUR and BGN investment and working capital loans under preferential terms that leverage the investment and are linked to it;
• Investment loans of up to BGN 2 million. Additional working capital financing up to 30% of the total investment amount for the respective final recipient, or BGN 391 166 in working capital lending, whichever is higher, in compliance with the requirements and ceilings applicable to State aid;
• Maturity of up to 10 years;
• Low-interest financing, with no interest or management fees charged on RDP funding;
• Low level of own funding is required from the final recipient

Source of the public resources

Rural Development Programme 2014 — 2020 co-financed from the European Agricultural Fund for Rural Development

Current stage of the financial instrument: investment period completed on 31.12.2023