What Does the Instrument Represent?

The program offers enterprises applying for financing with a project and business plan related to energy efficiency and circular production models the opportunity to benefit from guarantee coverage and non-repayable financial support in two directions:

  • Technical support – up to EUR 15,000 for an energy audit/conceptual design and for subsequent inspection of the implementation of prescribed measures and/or achieved energy savings levels.
  • Capital rebate – up to 15% of the total eligible financing upon achievement of project objectives.

Advantages

 

  • Easier access to financing
  • Possibility for non-repayable financial support
  • Relieved collateral requirements
  • Preferential pricing conditions
  • No guarantee fee
  • Support for resource and energy-efficient economy 
     
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Characteristics 
 

  • Types of financing: newly granted investment, revolving, and standard working capital loans with repayment schedule
  • Maximum amount: up to EUR 3.8 million, depending on eligible costs, enterprise size, and state/minimal aid used
  • Currency: EUR
  • Financing term: up to 120 months
  • Grace period for principal: up to 24 months
  • Deadline for inclusion and utilization: 31.12.2029
     

 

Eligible final beneficiaries 

The financial instrument for circular economy is intended for enterprises planning investments in sustainable solutions and circular production models:

  • For Energy Efficiency: Small, medium, and large enterprises
  • For Resource Efficiency: Small or medium enterprises (average employees up to 249; net sales revenue up to EUR 50 million; asset value up to EUR 84 million


Eligible projects – Energy Efficiency 

Investments based on recommendations from energy efficiency audits of:

  • Industrial systems (incl. machinery, equipment, and/or industrial/production/commercial buildings);
  • Enterprises, administrative, commercial, and other non-production buildings, including activities related to:            

  

  • Implementation and certification of energy management or monitoring and control systems, as well as consulting services and auxiliary materials for their implementation;
  • Acquisition/commissioning of systems/measures for using electricity, heat, and energy for heating and cooling and/or production of electricity from renewable sources (RES) for own consumption, incl. storage systems;
  • Acquisition/commissioning of machinery, equipment, and facilities representing tangible fixed assets;
  • Acquisition/implementation of intangible fixed assets (including software development);
  • Construction works on production buildings and/or related to energy efficiency measures;
  • Improvement/modernization of operations – regarding technologies, production processes, and delivery methods.    

Eligible investments must lead to a reduction in expected greenhouse gas emissions as a result of achieved energy savings (for RES only reduced emissions are counted).

*For RES, a conceptual or technical design by a licensed designer is required to assess necessary capacities, installation area, and structural reinforcements, with costs eligible for coverage under Technical Support.


Eligible projects – Resource Efficiency    

Investments for introducing circular models in product consumption, production processes, business models, or waste management aimed at permanently reducing resource intensity and leading to:



 

  • More efficient use of natural resources in production, including water;
  • Reduction of primary raw material use and increased use of secondary raw materials;
  • Improved recycling of products and materials through substitution of non-recyclable components and pre-treatment of waste;
  • Reduction of hazardous substances in materials and products throughout their life cycle, including substitution with safer alternatives;
  • Extended product use, including reuse, design for durability, repurposing, disassembly, reprocessing, modernization, repair, and sharing;
  • Prevention and reduction of waste (reuse, recycling; modernization of wastewater treatment technologies) in extraction, processing, production, and distribution of food, minerals, construction and demolition waste;
  • Minimization of waste incineration and disposal, including landfilling;
  • Use of renewable energy for own consumption (based on a conceptual or technical design).
     

Non-eligible activities/projects/costs

  • Energy efficiency of administrative/commercial and other non-production buildings not used by the borrower, as well as student dormitories and residential buildings; 
  • Transactions aimed at refinancing or restructuring existing loans; 
  • Financing of elements physically completed or fully implemented by the date of the investment decision; 
  • Decommissioning or construction of nuclear power plants; 
  • Reduction of greenhouse gas emissions from activities listed in Annex I to Directive 2003/87/EC; 
  • Primary production of agricultural products and products from fisheries and aquaculture; 
  • Production, processing, and sale of tobacco and tobacco products; 
  • Airport infrastructure; 
  • Except for existing regional airports (Art. 2, item 153 of Regulation (EU) No 651/2014), for mitigating environmental impact or for air traffic safety/security systems; 
  • Waste disposal in landfills; 
  • Production, processing, transport, distribution, storage, or combustion of fossil fuels; 
  • Except for: Replacement of solid fuel heating systems with gas (incl. district systems, cogeneration, residential installations); retrofitting gas networks for renewable and low-carbon gases; investments in clean vehicles for civil protection and fire services; 
  • Production or trade of products or activities considered illegal under laws or international conventions and agreements; 
  • Any economic activity related to pornography or prostitution; weapons and ammunition; gambling, casinos, and equivalent enterprises; 
  • Production of distilled alcoholic beverages; 
  • Research and development or technical applications for programs or electronic data solutions supporting: excluded sectors; illegal penetration and/or extraction of electronic data; human cloning for scientific or therapeutic purposes; genetically modified organisms (GMOs); 
  • Purchase of land exceeding 10% of total eligible project costs or 15% for abandoned or previously industrial land/buildings; 
  • Recoverable VAT.

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The loans are provided with the support of the Financial Instrument ‘Portfolio Guarantee with Loss Cap for Circular Economy’, secured through the Fund Manager of Financial Instruments in Bulgaria EAD (FMFIB) with resources under the ‘Competitiveness and Innovations in Enterprises’ Programme 2021–2027, co-financed by the European Union.”