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First Loss Portfolio Guarantee for Microcredit

  • Apply in seconds
  • Quick approval
  • 80% guarantee coverage
  • Grace period on interest and principal
  • Flexibility

First Loss Portfolio Guarantee for Microcredit

How does the guarantee instrument work?

Operational agreement between UniCredit Bulbank AD and Fund Manager of Financial Instruments in Bulgaria EAD (FMFIB) for implementation of the Financial Instrument “First Loss Portfolio Guarantee”, concluded on 05.08.2020 with co-financing by the European Social Fund through the Human Resources Development Operational Programme 2014-2020, assigned for management by FMFIB.



Microloans granted to eligible end recipients to finance eligible activities and eligible expenses within the investment period and included in the Guaranteed Portfolio, as specified in the Operational Agreement.


What are the conditions?


  • New working capital in BGN/EUR – revolving and standard working capital loans
    • Purpose – for working capital in connection with the development or expansions of the activities of the enterprise; self-employed person for covering costs related to the main activity of the company; increase the skills of employees (loan funds can be used to cover specific and professional training costs)
    • Term – 36 months for revolving loans and 60 months for standard working capital loans
  • Maximum loan amount for a borrower – BGN 97 791 or the equivalent in EUR.
  • New investment loans in BGN/EUR
    • Purpose – acquire tangible and intangible fixed and current assets
    • Self-participation – minimum 10%
    • Term – depending on the purpose of the investment, up to a maximum of 60 months
  • Guarantee coverage – 80%.
  • Deadline for application – December 31, 2023
  • Refinancing is not allowed
  • Grace period for principal (only for investment and standard working capital loans) – up to 24 months
  • Application of grace period for interest – not allowed
  • It is utilized only with documents for the expenses


  • Easy access to finance

  • Applicable for companies with activity from all economic sectors

  • Quick approval procedure
  • Reduced collateral requirements


Who is it suitable for?

  • Micro enterprises with up to 10 employees; assets up to BGN 3.5 mln.; turnover up to BGN 3.9 mln., operating in all sectors of the economy, except the traditionally prohibited ineligible for finance activities.

Eligible borrowers

  • Start-ups: Individuals or legal entities, who have recently registered as self-employed (incl. craftsmen, freelancers and other), sole traders or recently established micro-enterprises (in accordance with the provisions of Commission Recommendation 361/2003 and Art. 3 and 4 of the Small and Medium-Sized Enterprises Act, as amended), who meet all of the following criteria:

    • their registration was entered not more than 5 (five) years before the date of application for financing;

    • they did not distribute profits;

    • they have not been listed on stock exchanges;

    • they are not the result of a merger, division or separation.

The person, managing the start-up, is to be personally involved in the management of the start-up (including when the person does not perform economic activities as an individual or sole trader) and owns at least 50% of the micro-enterprise’s capital.

  • Social Enterprises.

Frequently asked questions

Contact your service banker at UniCredit Bulbank or submit a request through the contact form.

  • Activities that are inconsistent with the national legislation, including the Environmental Protection Act

  • Activities involving fraud, illegal activities and other similar practices screened under internal rules and procedures of UniCredit Bulbank.

  • Other activities prohibited by law.

No, the loan cannot be guaranteed under another guarantee scheme.


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