Municipal Guarantee Fund for Small and Medium Enterprises (MGFSME)
Topic of the practice
The MGFSME offers individual guarantees to small and medium enterprises (SMEs) when evaluating the specificities of each individual project of SMEs.The guarantee of the Fund allows partner banks to offer better crediting conditions to SMEs both from Sofia and from outside the municipality when they develop projects that are to be realized on the territory of the municipality
Good Practice Information
MGFSME has been created to: implement the policies of SM; support SMEs: stimulate entrepreneurship: achieve the following goals: Adoption and realization of initiatives for popularizing the city and attracting investments in SMEs; Improvement and achivement of conditions for entrepreneurial initiatives; Assistance in financial support for SMEs and alleviating their access to EU structural funds;
The fund provides guarantee support on loans to SMEs by sharing the credit risk with partner banks, covering up to 50 % of the loss on loan principal. The maximum value of MGFSME guarantees is 100,000 BGN (51129,19 EUR)
MGFSME offers consulting services to SMEs in the following fields:
- services for developing projects to apply for financing by the open schemes of EU Operational Programmes;
- accounting services;
- legal services;
- management services;
- services relevant to the receipt of international certification -- ISO 9001, 14001, granting of an initial crediting rating, etc.
Evidence of success
The interest towards the MGFSME financial instrument has been increasing, even within the context of the economic crisis, which testifies to the mutual interest from the Fund, both for SMEs and partner banks – the SME receives better crediting conditions while the bank increases the number of its customers.
Contact details to obtain further information on the practice
Municipal Guarantee Fund for Small and Medium Enterprises