Corporate Newsletter

Invest in your ideas beyond the big city

This article was prepared by and published in the web café online media

Sometimes the decision to leave the big city in search of a new beginning in a more peaceful spot in the countryside might be dictated not just by the desire for a stronger connection to nature but also by the professional drive for fulfilling the dream of establishing one’s own business.

Thus, moving to a smaller place in which to grow your venture may prove valuable not only to you but to an entire community.

Businesses need more than aspirations to grow – they need the right support as well.

Currently, the European Union offers a workable solution precisely in terms of support, and all that is required are people with business ideas.

The support in question is a Loan Portfolio Agreement with the European Investment Fund - InvestEU*, aimed at financing sustainable investments, innovation and job creation in Europe by granting soft loans to micro, small and medium-sized enterprises.

Through InvestEU, the EU intends to invest at least €372 billion in various small start-up businesses, to clients in the relevant sectors.

To this end, in Bulgaria the European Investment Fund (EIF) has signed an agreement with UniCredit Bulbank, under which the bank will serve as guarantor for targeted loans to companies.

"In this way, UniCredit Bulbank can offer loans with an accelerated approval procedure and eased requirements for additional loan collateral," explains Kalina Angelova, European Funds Manager at UniCredit Bulbank.

For example, if you run a small or medium-sized business that is not involved in any of the areas banned from EU support (tobacco or alcohol production and trade, arms sector, gambling, GMOs, etc.), you can apply for InvestEU funding for your project. You may enjoy additional advantages if you are active in a small town where the challenges you face will be quite different from those in the capital or other major cities in Bulgaria.

The key point here is that through the programme the EU strives to stimulate several priority areas for the Union – competitiveness, innovation and digitalisation, sustainability and green policies, as well as culture, education and the social sector.

What does this mean?

You can easily apply for an InvestEU loan from UniCredit if, for example, you want to optimise your production processes and thus make your company more competitive. This includes digitalisation, introducing equipment with minimal environmental impact or integrating new systems to save time or resources.

Research and development activities or the launch of new, innovative products may also qualify for project loan funding based on innovation and digitalisation.

You can also obtain support if you can prove that your business is doing well and that you have recorded a growth in revenue or staff of more than 20% in the previous year. A further advantage when applying for support through InvestEU is the existence of registered patents, awards and certificates related to your projects.

When it comes to life outside the big city, the second direction - sustainability - is of much more interest. This is where many agricultural companies can apply.

Here, the targeted loans from UniCredit are open to businesses that contribute to the transition to a circular economy, to the saving of energy and resources and adopting of greener practices.

For example, if you are involved in agriculture and wish to introduce a new drip irrigation system which will save significant water and/or energy, optimising profit and production capacity, such project may also apply for funding through an Invest EU loan.

The idea is to stimulate businesses that make agriculture greener, cleaner and have a reduced environmental footprint.

“For example, let us say there is a farm that produces milk and dairy products. It is still very new, but has excellent potential, although, logically, it does not yet have anything to offer as collateral to the bank in order to obtain a loan for expansion. It can now apply to UniCredit Bulbank under InvestEU. If the application meets all programme criteria, the farm can get a loan under much better parameters or at much lower interest rates to help it develop faster," notes Kalina Angelova.

Firms and companies in small settlements can also benefit from these targeted UniCredit loans, not only for agricultural projects.

The EU's focus on stimulating the cultural and creative sector provides financing opportunities for architectural projects, libraries, museums, arts and crafts, audiovisual effects, tangible and intangible cultural heritage, design, festivals, music, literature, performing arts and more.

The aim here is to establish sustainable, functioning and viable income-generating businesses in the cultural and arts sector outside the capital and other major cities, as we know that this sector is often neglected in smaller cities although it is of utmost importance for society.

The key word behind Invest EU loans from UniCredit Bulbank is precisely ‘sustainability’.

Through a Loan Portfolio Guarantee Agreement with the European Investment Fund - InvestEU, companies can receive the boost they need to develop their business, to gain a stable foothold in the market, to improve their competitiveness and to create new jobs outside the big city.