Bulgaria BDB InvestEU Business Financing 2026
Program Overview
The Bulgarian Development Bank (BDB) and UniCredit Bulbank signed a new guarantee agreement in January 2026, as announced by BDB CEO Tsanko Arabadzhiev under the InvestEU programme, enabling provision of loans worth €100 million to small, medium-sized, and mid-cap companies. This initiative expands access to financing for Bulgarian businesses, supporting growth, competitiveness, and economic development.
Financing Terms
€100 Million Loan Pool
The InvestEU guarantee agreement facilitates up to €100 million in loans for Bulgarian enterprises. This substantial capital pool provides medium to long-term financing for investment projects, working capital, and business expansion initiatives.
Guarantee-Backed Lending
The InvestEU guarantee de-risks lending by sharing credit risk with financial intermediaries. This enables BDB and UniCredit Bulbank to extend financing to companies that might not qualify for traditional commercial lending, particularly innovative businesses with strong growth potential but limited collateral.
About Bulgarian Development Bank
State Development Finance Institution
The Bulgarian Development Bank (BDB) is a lending institution 100% owned by the Bulgarian state, established in 1999 as an Incentive Bank. BDB's mission is to support economic development by providing financing that complements commercial banking, particularly for strategic sectors and underserved markets.
Financing Capabilities
BDB provides direct investment loans, working capital loans, credit lines, and second-floor lending to Bulgarian commercial banks for medium and long-term financing of SMEs. This dual approach—direct lending and on-lending through banks—maximizes reach across the business community.
Financing Products
Investment Project Financing
BDB offers project financing for investment projects in Bulgaria, supporting both newly established project companies and existing companies with credit and financial history. Eligible projects include facility expansion, equipment acquisition, technology modernization, and new business establishment.
Working Capital Loans
Beyond capital investments, BDB provides working capital loans to support operational needs, inventory financing, and short-term liquidity requirements for established businesses.
On-Lending Through Banks
BDB provides second-floor loans to Bulgarian commercial banks, which then on-lend to SMEs. This approach leverages the commercial banking network's customer relationships and underwriting capabilities while providing favorable terms backed by BDB resources.
EU Funds Acceleration Instrument
The Bulgarian Development Bank operates an Instrument for Accelerated Disbursement of European Funds, which expedites utilization of EU funds allocated to Bulgaria. This instrument provides financial and administrative support to ensure projects benefiting from European funds are implemented efficiently and effectively, reducing bureaucratic delays.
Guarantee Services
National Guarantee Fund
The National Guarantee Fund offers guarantees for SME loans with less collateral than general banking requirements. This is particularly valuable for growing companies and startups that have strong business models but limited hard assets to pledge as security.
Micro-Loan Guarantees
Specialized guarantees for micro-loans support the smallest enterprises and early-stage businesses, facilitating access to capital that might otherwise be unavailable through commercial channels.
Eligibility Requirements
SME and Mid-Cap Companies
The InvestEU program targets small and medium-sized enterprises (fewer than 250 employees) as well as mid-cap companies (250-3,000 employees). Both newly established companies and those with existing credit history qualify for consideration.
Project Requirements
Projects must be located in Bulgaria and demonstrate economic viability, job creation potential, and alignment with national development priorities. Financing supports productive investments, technology adoption, and business growth initiatives.
Application Process
Step 1: Determine whether to apply directly to BDB or through UniCredit Bulbank. Direct applications suit larger projects, while bank applications may be more appropriate for standard business loans.
Step 2: Prepare comprehensive business plan and financial projections demonstrating project viability, market opportunity, and repayment capacity.
Step 3: Submit application with required documentation including company registration, financial statements, project details, and collateral information.
Step 4: Undergo due diligence evaluation by BDB or the participating bank, which assesses financial viability, project feasibility, and credit risk.
Key Contacts
Bulgarian Development Bank: https://bbr.bg/en/
Business Project Financing: https://bbr.bg/en/lending/business-project/
For detailed information on InvestEU financing, application procedures, and eligibility criteria, visit the BDB website or contact their business lending division directly.
Common Questions
The Bulgarian Development Bank (BDB) provides loans, guarantees, and equity investments to Bulgarian SMEs through the InvestEU program. Products include working capital loans, investment loans for equipment and technology, and guarantee schemes that help companies access commercial bank financing with reduced collateral requirements. The InvestEU backing allows BDB to offer more favorable terms than standard commercial lending.
Bulgarian businesses apply through the BDB directly or through partner commercial banks participating in the guarantee programs. Requirements include being a registered Bulgarian company, demonstrating financial viability, and presenting a clear use-of-funds plan. SMEs in innovation, digital transformation, and green technology sectors may receive preferential terms. The application process typically involves submitting financial statements, a business plan, and project documentation.
BDB provides portfolio guarantees through partnered commercial banks, enabling credit extension with reduced collateral and enhanced risk tolerance. The InvestEU framework supports innovation, sustainable infrastructure, social investment, and SME competitiveness. This intermediated model ensures broad geographic distribution across municipalities while leveraging commercial bank relationship networks and assessment infrastructure.
Businesses access reduced collateral obligations, extended repayment schedules, and potentially lower rates reflecting EU-level guarantee risk mitigation. Enterprises that conventional committees would decline may qualify under InvestEU programmes. Guarantees enable longer tenors for capital-intensive projects. BDB periodically introduces targeted windows addressing priorities like digital transformation or energy efficiency improvements.
References
- BDB and UniCredit Bulbank Sign InvestEU Agreement. Bulgarian Development Bank (2026). View source
- Bulgarian Development Bank, UniCredit Bulbank Agree to Expand Funding Access under InvestEU. BTA (Bulgarian Telegraph Agency) (2026). View source
- BDB and UniCredit Bulbank Strengthen SME Competitiveness. INSME. View source
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