FMFIB JSC is implementing an operation for financial instruments through a holding fund under the Programme „Education “(PE) 2021-2027, co-financed by the EU.
The total amount of support from PE 2021-2027 for financial instruments amounts to to EUR 16 693 510,17 of which EUR 13 305 611 is provided by the European Union through the European Social Fund Plus (ESF+), and EUR 3 387 899,17 represents national co-financing.
The financial resources will be used to structure financial instruments (FIs) under Priority 3 „Linking Education to the Labor Market” of the Programme, through which financial products for equity and quasi-equity investments, as well as debt financial products for loans and guarantees, will be provided.
The indicative allocation of resources between financial products is as follows:
The financial instruments are aimed to contribute to addressing some of the challenges, primarily in facilitating the access to finance for start-ups of students and PhD candidates, with the goal to develop their entrepreneurial skills, create self-employment, and assist the transition process from higher education to employment.
The target final recipient are start-up enterprises (registered no more than 5 years before the date of application), owned by students and/or PhD candidates in all forms of education. They are required to hold at least 50% of the enterprise’s capital and be directly engaged in its management. The enterprises must be registered and conduct their main economic activity on the territory of the Republic of Bulgaria.
framework of the Holding Fund, the following financial instruments under PE 2021-2027 are planned:
Fund for startups by students and PhD candidates - The goal is to invest in a portfolio of start-ups from the target groups (enterprises owned by students and/or PhD candidates (with possible participation of university professors) for business initiation or other entrepreneurial initiatives.
Expected participation of private investors in the capital: at least 1% by the fund manager.
Expected investments in final recipients: EUR 10.36 million.
Eligible investments per final recipient - up to EUR 150 000.
Microfinancing for entrepreneurial of students and PhD candidates: A debt FI aimed at financing a portfolio of loans each of up to EUR 51.1 K under favourable conditions to start-ups established by students, PhD candidates (with possible participation of professors).
Financing in the form of long-term loans with a repayment plan or short-term loans with a bullet principal repayment, or in the form of financial leasing, can be provided for:
Investments in tangible and intangible assets;
Working capital necessary for the enterprise’s/self-employed person’s main economic activity or for expanding its activities;
Financing the development and enhancement of the entrepreneur’s/employees’ skills, as well as covering costs for specific and professional training;
The loans will be provided for a term of up to 120 months, with a grace period for principal repayment of up to 3 years and favourable conditions regarding collateral. At least 90% of each loan will be financed with resources from the Programme and will be provided at 0% interest and without additional fees or commissions related to the public part of the funding. No contribution is expected from final recipients.
Expected total amount of loans to final recipients, including the expected contribution from the financial intermediary: EUR 4.9 million.
Expected leverage effect: 1,24.
The financial instruments under Programme „Education“ 2021-2027 are expected to support over 220 start-ups owned by students and/or PhD candidates (with possible participation from university professors), will be supported.
