Sofia Municipality guarantees the funding of innovative start-up enterprises

The Mayor of Sofia Yordanka Fandakova signed a framework agreement

Sofia Municipality through the Municipal Guarantee Fund for Small and Medium Enterprises in partnership with DSK bank has started the Program for funding of innovative start-up enterprises. The news was announced by the Mayor of Sofia Yordanka Fandakova who signed the framework agreement with Violina Marinova - CEO of DSK Bank in the presence of the deputy-mayor Doncho Barbalov, municipal councilor Irina Yordanova, Nikolay Tsenkov – head of the Municipal Guarantee Fund.

The funding program is aimed at facilitating the access of innovative start-up enterprises to financial resources for the fulfillment and development of their business projects

As part of the execution of the Program, the Municipal Guarantee Fund will issue guaranties on credits, granted for the funding of innovative business ideas.

“So far the Fund has issued guarantees for 620 projects of small and medium enterprises, the total amount being BGN 115 million, but for the first time it will have a special program, aimed at innovative start-up enterprises ", said the mayor Fandakova.

The Fund will share a part of the credit risk with the bank-lender by guaranteeing up to 50% of the credit. The amount within which will be issued guaranties on the Program is BGN

600 000 until the end of the year. In case of a strong interest in this financial instrument it can be increased for next year.

The emphasis of the specialized guarantee scheme is on the main thematic priorities of the

Innovative Strategy for Intelligent Specialization of Sofia, including informatics and information and communications technology, as well as new technologies in the creative and recreative industries.