Micro, Small and Medium-sized Enterprises (with up to 249 employees) registered and operating on the territory of Bulgaria which comply with at least one of the following criteria:

• Merchant by the meaning of the Bulgarian Commercial Law with registered office in Bulgaria.
• Are not an "undertaking in difficulty" as of 31.12.2019 within the meaning of p. 20 and 24 from the Guidelines on State aid for rescuing and restructuring non-financial undertakings in difficulty (OJ C 249, 31.7.2014).
• The Final Recipient is not subject to collective insolvency proceedings.
• With at least three completed financial statements, with reported sales revenues, as well as accounting profit for at least one of the last three years.
• The enterprise has no tax-insurance liabilities under Article 87 of the TPSC, as of the date of the Loan Agreement.
• The Final Recipient shall not have a substantial focus on one or more restricted Sectors set in First Loss Portfolio Guarantee COVID-19 Agreement.
• Lack of credit liabilities, expressed in delinquency over 90 days for an amount of over BGN 2,500 to a credit or financial institution as of the approval date for financing. The requirement also applies to the actual owners of the enterprise.
• The actual owner(s) of the enterprise, controlling at least 50% of its capital, is a local person within the meaning of the definition under Art. 4 of the Personal Income Tax Act.

Restricted Activities:

• Any production, trade or other activity, which is illegal under the laws or regulations of the Republic of Bulgaria.
• Financing of transactions supported by the national budget or the EU budget.
• Acquisition of trucks, commercial vehicles and heavy goods vehicles by companies performing road freight transport.
• Financing the purchase of land not built on and land built on when the amount of the respective expense exceeds 10% of the principal of the Loan.
• Financing of transactions in the sectors, forbidden as per Commission Regulation (EC)1407/2013.