The Fund Manager of Financial Instruments in Bulgaria (FMFIB) is preparing a new debt financial instrument, “Microfinancing for Business Start-up and Employment”, funded by the European Social Fund+ under the “Human Resources Development” Programme 2021–2027. The instrument aims to promote entrepreneurship, create sustainable employment, and support the social inclusion of vulnerable groups on the labour market.

Objectives of the Instrument

• Encouraging vulnerable groups on the labour market to start their own business or other entrepreneurial activity, including through measures supporting self-employment and the development of the social economy.
• Developing entrepreneurial skills among young people up to the age of 29 through internships, on-the-job training, subsidised employment, and specialised training programmes.
• Supporting start-ups, micro-enterprises, and social enterprises that create new jobs for people in a disadvantaged position on the labour market.

Budget of the Instrument

The financial instrument has a total resource of EUR 17.2 million, comprising funding from the European Social Fund+ and national co-financing, of which EUR 6.85 million is earmarked for non-repayable grant support, provided in combination with a loan within a single operation.

Priority	Programme Funds (EUR)	of which grant (EUR)
Priority 1 ‘Promoting Employment and Skills Development’	10,747,768	4,280,000
Priority 3 ‘Promoting Youth Employment’	6,448,661	2,568,000
Total	17,196,429	6,848,000

 

Key Financing Parameters

• Up to EUR 50,000 — investment or working capital loan, including financial leasing, for start-ups, micro-enterprises, and social and solidarity economy enterprises.
• Up to EUR 25,000 — financing for training and courses outside the formal education system for young people up to the age of 29.
• 0% interest on the public resource under the instrument; interest on private co-financing is set at market conditions.
• No own contribution or additional collateral is required from the final recipient.
• Up to 40% of the loan granted may be converted into non-repayable grant support, following verification of results achieved against the business plan.
• For start-ups less than 1 year old, an additional 5% of the loan value may be provided as a grant for mentoring, training, and advisory services.

Loan Type	Loan Term	Grace Period
Investment (tangible and intangible assets)	up to 120 months	up to 36 months
Working capital	up to 60 months	up to 12 months
Training / courses	up to 48 months after the grace period	up to 12 months after completion of training

 

Target Groups of Final Recipients

Financing is available to start-ups registered no more than 5 years before the date of application, in which at least 50% of the capital is held by:

• young people up to the age of 29;
• persons from disadvantaged groups on the labour market, as defined by the Employment Promotion Act;
• other start-up entrepreneurs — natural persons for whom the enterprise is their sole business;
• Bulgarian citizens who returned to Bulgaria from abroad within 3 years prior to application;
• third-country nationals with international or temporary protection, as well as foreign nationals holding long-term or permanent residence permits with the right to access the labour market.

Also eligible are start-ups in the social and solidarity economy, micro-enterprises that employ or have employed persons in a disadvantaged labour market position, and social economy enterprises, regardless of their registration period.

Current Stage of the Procedure

The instrument is currently at the documentation preparation stage, following a market test conducted in March 2026. Financing will reach final recipients through financial intermediaries (banks and non-bank financial institutions), which are yet to be selected by FMFIB under the Public Procurement Act. The call for participation and the full set of documents are expected to be published on FMFIB’s official website, together with an announced deadline for submitting offers.

At present, the procedure is not open for direct applications from entrepreneurs. RIC Ambitous Gabrovo will monitor the progress of the procedure and will inform interested parties in due course once applications from final recipients open.

Source and Further Information

Full information on the financial instrument, including the indicative technical specification and documents from the market consultations held, is published on the official website of the Fund Manager of Financial Instruments in Bulgaria:

https://fmfib.bg/instrument/dalgov-finansov-instrument-po-programa-razvitie-na-choveskite-resursi

 

This news item has been created with the financial support of the Research, Innovation and Digitalization for Smart Transformation Program 2021-2027, co-financed by the European Union through the European Regional Development Fund under project BG16RFPR002-1.002-0001 -C01 “Accelerated digitalization for SMEs in the Central Region through the creation and development of EDIH.” The Regional Innovation Center “Ambitious Gabrovo” bears full responsibility for the content of the document and under no circumstances can it be assumed that this document reflects the official position of the European Union and the managing authority.