Municipal Guarantee Fund for SMEs of Sofia

4 “11 August” Str. 2fl.
1000 Sofia

+359 2 9809938

The Municipal Guarantee Fund for SMEs is a unique financial instrument launched and developed by the Sofia Municipality in support of the entrepreneurship and innovation ecosystem in one of the fastest growing capitals in Europe. It aims at raising the competitiveness and success rate of SMEs in Sofia and applying the ”Think Small First“ principle at the heart of the municipal economic policy. The Fund has the mission of providing loan guarantees for SMEs who have an economically sound project but cannot secure sufficient bankable collateral.

Through its general guarantee scheme MGFSME partly covers the credit risk associated to loans extended to SMEs by 13 banks – partners of the Fund at a value up to BGN 100,000 and/or up to 50% of the principal of the loans. Up to now the Fund has supported over 630 SME projects by contributing to lending over BGN 117 million with a guarantee commitment of the Fund of about BGN 31 million.

In 2018 the Fund launched FISP – Financing Innovative Start-ups Program, which is aimed at facilitating the access of start-up and innovative enterprises to financial resources in connection with the realization and development of their business projects.

Year of creation
individual entities or association
Type of organization
National Promotional Bank (NPB), National Promotional Institution (NPI), Private, Mutual, Mixed
Type of scheme
guarantee or counter-guarantee
Product typology
guarantee or counter-guarantee or co-guarantee
i.e. fully mutual, funded by SMEs, banking associations, fully public, fully private, private-public, mixed models
Fully public
Shareholder structure
Private / Public (in %)
Legal form
of single guarantee entity or association: i.e. fund, development bank, development agency, cooperative or mutual societies, bank, foundation, association, limited company, etc.
Structure / Network
i.e. central scheme with regional offices, central scheme only, association network
Regional structure
Geographic coverage
i.e. local, regional, national
Size of businesses supported
i.e. large companies, SMEs, micro-enterprises, independent/self-employed
SMEs, Micro Enterprises
Supervision statute
i.e. mono-product banking licenses, financial intermediary statute, non-supervised. For associations, please state statute of members
Financial Intermediary Status
Profit / Non-profit oriented
dividends to public shareholders are not considered as profit orientation
Do you benefit from a counter-guarantee at local, regional or national level?
Local level or Regional level or National level
Are you/your members financial intermediary for EU-programmes?
CIP/COSME or Structural funds or Progress or RSI/RSFF Horizon 2020
Types of guarantee products provided by your organisation/your membersLoan default guarantees, Working capital loan guarantees, Leasing guarantees, Export guarantees
Other SME support instruments offered by your organisation/your members
Subsidized loans or Mezzanine financing or Venture capital or Coaching or Mediation services
Coaching, Information and Consultation Services
Is the activity subject to state aid regulation?No
Do you (your members) use..?
De minimis or GBER or Regional guidelines or Notification
Do you (your members) dispose of an internal rating/scoring system?No
Do your guarantees provide deponderation (capital relief) for member banks subject to capital requirements (Basel agreement)?Yes
Do you (your members) benefit of a public counter-guarantee that allows deponderation (capital relief)?No


Financing Innovative Start-ups Program
application/pdf | 1,41 MB