The new financial instruments will facilitate access to finance for entrepreneurship, self-employment and social enterprises
Тhe Bulgarian Fund of Funds has launched two calls for the selection of financial intermediaries that will manage the "Microfinance for Business Start-ups and Employment" debt instrument and the "Sustainable Business Start Fund" equity instrument under the Human Resources Development Programme 2021–2027 (HRDP), co-financed by the European Union through the European Social Fund Plus (ESF+).
The selected financial intermediaries will be responsible for the implementation and management of the two financial instruments, which are designed to promote entrepreneurship, job creation and social inclusion.
The instruments, with a total public resource of nearly EUR 31.4 million, will facilitate access to finance for start-ups and social enterprises. The main target groups of final recipients under both instruments are start-ups that meet the below requirements:
established within the last 5 years
at least 50% of the share capital is owned by and the management is directly carried out by, one or more persons belonging to the following categories: individuals aged 29 and under, unemployed persons, persons with permanent disabilities, persons aged 55 and above, Bulgarian citizens returning from abroad, foreign nationals, and others.
Micro-enterprises and social enterprises that undertake to employ or already employ people from vulnerable groups in the labour market are also eligible for financing.
Emphasis is placed on investments in Northern Bulgaria.
The "Microfinance for Business Start-ups and Employment" debt instrument has a public resource of EUR 17.2 million, of which nearly EUR 7 million is allocated for grants combined with loans under a single financing agreement.
Financing will be available of up to the amount of EUR 50,000 in the form of investment loans, working capital loans or financial leasing, and up to EUR 25,000 for non-formal education and training. The maximum repayment period will be 10 years, with the possibility of a grace period of up to three years. Beneficiaries will also benefit from simplified collateral requirements and lower interest rates, as the resources provided under the Human Resources Development Programme are provided at a 0% interest rate.
The grant component may take the form of capital relief through the partial write-off of the loan, conditional upon the successful implementation of the financed activities and the achievement of predefined results. It may also provide technical support covering mentoring, training, accounting, legal and other specialised services, available exclusively to start-ups established no more than one year prior to financing. The instrument is expected to support more than 600 enterprises.
The "Sustainable Business Start Fund" equity instrument has a public resource of EUR 14.2million, of which nearly EUR 3.5 million is allocated for grants combined with equity investments under a single investment agreement.
The instrument will provide equity and/or quasi-equity financing to start-ups, including social enterprises, seeking either to establish a new business or to further develop their activities.
The maximum investment amount will be EUR 150,000, including grants of up to EUR 37,000 for investment purposes. Under this instrument, the grant component may be used for investments in tangible and intangible assets, workplace equipment, training, mentoring support, staff remuneration and other eligible activities, as well as services related to product or service validation, accounting, legal and other expert support.
The instrument is expected to support more than 120 enterprises.
The investment period for both instruments extends until the end of 2029.
Applications for participation in the financial intermediary selection procedures may be submitted until the following deadlines:
"Microfinance for Business Start-ups and Employment" – 11 September 2026;
"Sustainable Business Start Fund" – 27 August 2026.
Eligibility requirements
Under the debt instrument, applicants may be credit institutions, financial institutions authorised to provide financing in the Republic of Bulgaria, or consortia including such institutions.
Under the equity instrument, applicants may be Bulgarian or foreign natural or legal persons, consortia thereof, or any other entities authorised to provide such services under the legislation of the country in which they are established.
Financial intermediaries will be required to provide additional private resources. The selection and award criteria are set out in detail in the respective procurement documentation. Both instruments also provide for a management fee payable to the selected financial intermediaries.
The full procurement documentation can be accessed through the CAIS EОP – Buyer Profile at the following links:
"Microfinance for Business Start-ups and Employment": https://app.eop.bg/today/593010
"Sustainable Business Start Fund": https://app.eop.bg/today/589816
