National Guarantee Fund

What National Guarantee Fund does

National Guarantee Fund EAD (NGF) is a Bulgarian portfolio guarantee institution founded in 2008 as a wholly-owned subsidiary of the state-backed Bulgarian Development Bank (BDB) Group. NGF's core function is to issue guarantees that complement the collateral Bulgarian commercial banks require from small and medium-sized enterprises (SMEs), enabling loan approvals for businesses — including start-ups and those without credit history — that would otherwise be declined. Guarantees typically cover up to 50% of loan obligations under NGF's own-risk schemes and up to 80% under EU-backed agricultural and rural development programs, with a 10%-of-fund-capital per-enterprise cap.

NGF distributes its guarantees exclusively through a channel-partner model: SMEs cannot apply directly, but access NGF-backed loans through 21 partner commercial banks (including UniCredit Bulbank, UBB/OBB, FIBank, Eurobank Bulgaria, TBI Bank, BACB) and leasing partners (UniCredit Leasing, OTP Leasing, BBR Leasing). The fund operates active guarantee schemes covering SME financing, SME leasing, and agricultural producers (in partnership with the Ministry of Agriculture and Food), alongside concluded programs such as COSME/EFSI, NGF 2019, and legacy agricultural and fisheries sector guarantees. The underlying technology is a standard online banking platform accessed through the BDB Group portal (online.bdbank.bg/WebBank/).

NGF's revenue model is transaction-fee-based, charging guarantee fees for covering a portion of partner-bank loan obligations, thereby reducing credit risk for partner financial institutions. Since inception, NGF has facilitated more than BGN 3.3 billion in guaranteed credits supporting over 12,000 Bulgarian SMEs and creating nearly 20,000 jobs, multiplying initial public resources 40x. The organization is headquartered in Sofia, operates with 11-50 employees, and serves exclusively the Bulgarian market as an instrument of national economic policy within the BDB Group ecosystem.

Name

National Guarantee Fund

Legal name

National Guarantee Fund EAD

Website

https://ngf.bg

Company type

Private

Founded year

2008

Operating status

Operating

Headcount range

11–50 employees

Short description

State-owned Bulgarian portfolio guarantee institution that helps SMEs access bank financing by issuing guarantees covering up to 50-80% of loan obligations, operating through 21 partner banks and leasing companies as a subsidiary of the Bulgarian Development Bank Group.

Ownership category

akta.pro rank

Product category

SME Credit Guarantees

NAICS

Finance and Insurance (52)

SIC

Surety Insurance (6351)

akta.pro primary industry

Development Finance, Guarantees & Blended Finance Programs (BPADABAM)

Keywords

• SME loan guarantees
• Portfolio guarantee schemes
• Credit risk sharing
• Agricultural finance guarantees
• Leasing guarantee programs

Headquarters

HQ city

Sofia

HQ country

Bulgaria

HQ region

Europe

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Infrastructure, Marketing or Sales

Revenue model

1. Guarantee fees: NGF generates revenue by issuing guarantees to commercial banks and leasing companies, complementing collateral required for SME loans. The fund charges guarantee fees for covering a portion (typically up to 50%, or up to 80% for EU rural/fisheries programs) of the loan obligation, thereby reducing credit risk for partner financial institutions and enabling SMEs to access financing they would otherwise not qualify for.

Go-to-market motion1 record

Distribution channels1 record

Marketing channels3 records

Core offering

National Guarantee Fund EAD issues portfolio guarantees to commercial banks and leasing companies in Bulgaria, covering up to 50% (standard) or up to 80% (under EU Rural Development and Agricultural Strategic Plan 2023-2027) of loan obligations for small and medium-sized enterprises. The guarantees supplement collateral required by partner banks, enabling SMEs that lack sufficient security, credit history, or collateralized assets to obtain investment loans, working capital financing, and leasing for machinery, equipment, vehicles, or real estate.

Product overview

National Guarantee Fund (NGF) is a portfolio guarantee institution that facilitates access to finance for small and medium-sized enterprises (SMEs) by complementing collateral required by commercial banks. The fund operates as a single-window mechanism offering multiple guarantee schemes, including active programs (NGF 2022 SME Financing, SME Leasing guarantees, and Agricultural Producers guarantees) as well as concluded schemes (COSME, NGF 2019, Agricultural and Fisheries sector guarantees). NGF shares credit risk with partner banks, providing guarantees covering up to 50-80% of loan obligations, enabling Bulgarian SMEs to access approximately BGN 3.3 billion in guaranteed loans since inception.

Differentiator

Problem solved

Functional benefit

Products and services

• NGF 2022 - SME Financing Active own-risk guarantee scheme that issues portfolio guarantees to commercial banks covering up to 50% of newly granted investment and operating loans to Bulgarian SMEs lacking sufficient collateral. Designed for investment loans, working capital loans, and bank guarantees in BGN and EUR.
• Guarantee Scheme for SME Leasing Deals NGF's first leasing guarantee program covering up to 50% of the financed value of leased machinery, equipment, transport vehicles, or real estate for Bulgarian SMEs. Maximum BGN 1.5 million per deal, distributed through UniCredit Leasing, OTP Leasing, and BBR Leasing.
• Guarantee Scheme for Agricultural Producers (MAF) Active guarantee scheme operated in partnership with the Ministry of Agriculture and Food, covering up to 80% of obligations for Bulgarian agricultural producers under the Rural Development Programme and the Strategic Plan for Agricultural and Rural Development 2023-2027.

Quantifiable outcome

• BGN 3.3 billion in guaranteed credits facilitated for over 12,000 Bulgarian companies since 2008
• +4 more outcomes

Named customers1 record

Segments4 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Eleven partnerships are on record, tiered core and minor.

• BBR LeasingcoreStrategic or Co-development Partner · 1 January 2024NGF entered a new partnership with BBR Leasing (another subsidiary of BDB Group) to serve as guarantor under a new BBR Leasing program for small and medium-sized businesses. This cross-subsidiary collaboration aims to expand access to leasing finance for SMEs.
• United Bulgarian Bank (OBB)coreChannel Partner/ Reseller/ Distributor · 5 August 2022NGF signed guarantee agreement with OBB (part of Belgian KBC Group) for issuing guarantees on loans to micro, small and medium enterprises. Total guarantee limit of BGN 192 million. Allows for potentially BGN 1.4 billion in guaranteed loans. Approximately 5,000 SMEs expected to receive support. Guarantees cover up to 50% of loan amounts for investment, working capital, and bank guarantees in BGN and EUR.
• UniCredit LeasingcoreChannel Partner/ Reseller/ Distributor · 16 June 2022Launched NGF's first-ever leasing guarantee program. UniCredit Leasing is a partner under the SME leasing guarantee scheme. Deals capped at BGN 1.5 million per transaction, guarantee covers up to 50% of the financed value of leased machinery, equipment, transport vehicles, or real estate. Total program size BGN 157.5 million allowing BGN 315 million in total leasing deals.
• OTP LeasingcoreChannel Partner/ Reseller/ Distributor · 16 June 2022OTP Leasing joined NGF's first SME leasing guarantee program alongside UniCredit Leasing. Other leasing companies expected to join subsequently. The program allows guarantees up to 50% of financed value for leasing deals up to BGN 1.5 million, targeting SME modernization of production facilities.
• Ministry of Agriculture and Food (MAF)coreStrategic or Co-development Partner · 1 January 2013NGF operates guarantee schemes for agricultural producers in partnership with the Ministry of Agriculture and Food. The guarantee program for agricultural sector started in early 2013. Under the Strategic Plan for Agricultural and Rural Development 2023-2027, guarantees can cover up to 80% of obligations (higher than the standard 50%).
• UniCredit BulbankcoreChannel Partner/ Reseller/ Distributor · 1 January 2010Eleventh consecutive guarantee agreement between UniCredit Bulbank and NGF (partnership dating from 2010). NGF provides portfolio guarantees covering up to 50% of newly granted investment and operating loans. Over 2,600 Bulgarian companies supported through this partnership. Most recent agreement provides guarantee portfolio of over BGN 200 million. Deadline for inclusion in guaranteed portfolio is June 30, 2025.
• Bulgarian American Credit Bank (BACB)minorChannel Partner/ Reseller/ Distributor · 1 January 2010Partner bank under the COSME Guarantee Scheme (now concluded). BACB is one of the partner financial institutions through which NGF's guarantees were made available to SMEs for investment and working capital loans.
• Micro Financing Institution JOBS (MFI)minorChannel Partner/ Reseller/ Distributor · 1 January 2010Partner institution under the COSME Guarantee Scheme. MFI JOBS provides microfinance lending, complementing NGF's guarantee products for the smallest micro-enterprises.
• TBI BankminorChannel Partner/ Reseller/ Distributor · 1 January 2010Partner bank under the COSME Guarantee Scheme. TBI Bank participates as a distribution channel for NGF portfolio guarantees to SME borrowers.
• First Investment Bank (FIBank)minorChannel Partner/ Reseller/ Distributor · 1 January 2010Partner bank under the COSME Guarantee Scheme. FIBank distributes NGF guarantee-backed SME loans.
• Eurobank Bulgaria (Postbank)minorChannel Partner/ Reseller/ Distributor · 1 January 2010Partner bank under the COSME Guarantee Scheme. Eurobank Bulgaria (operating as Postbank) distributes NGF guarantee products to SME loan applicants.

Scale indicators11 records

Recent moves7 records

Expansion highlights5 records

Broad incumbents

• European Investment Fund (EIF): EIF is the EU's specialist institution for SME financing, providing counter-guarantees, guarantees, securitisation, and equity/venture capital across Europe. It is directly comparable to NGF because EIF has provided counter-guarantees under COSME and other EU programmes that NGF channels into Bulgarian SME loans, performing the same risk-sharing function at pan-European scale.
• Bpifrance: Bpifrance is France's public investment bank providing guarantees, loans, and equity to SMEs through partner banks and directly. It shares NGF's core model of using state-backed guarantees to unlock bank financing for SMEs that lack collateral, and operates a comparable counter-guarantee relationship with EIF.
• Cassa Depositi e Prestiti (CDP): CDP is Italy's state-owned financing institution for national development, supporting SMEs through partner banks and dedicated vehicles (e.g., Fondo di Garanzia per le PMI). It is comparable to NGF at the SME guarantee level but operates across a much broader Italian economy with diversified development finance functions.
• KfW Group: KfW is Germany's state-owned development bank, offering guarantee programmes (e.g., Bürgschaftsbanken-backed SME guarantees), export financing, and development loans. It is comparable to NGF in providing state-backed guarantees to SMEs through partner banks, but at significantly larger scale across Germany.

Others

• Bulgarian Development Bank (BDB): BDB is NGF's parent company and the broader state-owned credit institution through which NGF is funded and governed. It is not a direct competitor but is the closest institutional peer, holding at least 51% of NGF, providing shared governance, treasury, and access to EU and state capital relevant to NGF's guarantee schemes.

Regional players

• Bank Gospodarstwa Krajowego (BGK): BGK is Poland's state development bank providing guarantee instruments (e.g., de minimis guarantees) for SME loans through partner banks. It is comparable to NGF as a state-backed SME guarantor operating via commercial bank distribution, although BGK is part of a much larger Polish development banking group.
• Banco de Garantía de Inversión (BGİ) / similar Iberian guarantee institution: ICO (Instituto de Crédito Oficial) is Spain's state-owned financial institution providing guarantees and credit lines to SMEs and the self-employed, channeled through partner banks. It is comparable to NGF in mandate and partner-bank distribution model but operates across a larger Iberian market with broader product scope.
• Hellenic Development Bank (HDB / ETEAN): HDB is the Greek state-owned development bank providing guarantees and loans to SMEs, often in partnership with EU programmes. It is structurally comparable to NGF as a national SME guarantee institution operating within an EU member state and channeling EU counter-guarantees through partner banks.

Direct peers

• Czech-Moravian Guarantee and Development Bank (CMZRB): ČMZRB is the Czech state-owned development bank providing guarantees, loans, and other SME support instruments, structurally analogous to NGF as a national SME guarantor. Both institutions operate within a state development bank framework and channel EU counter-guarantees into domestic SME financing through partner banks.
• Slovenská záručná a rozvojová banka (SZRB): SZRB is Slovakia's state-owned guarantee and development bank, providing SME guarantees and loans through partner banks. It is a close geographic and structural peer to NGF, operating a similar SME guarantee mandate within an EU member state and serving as a national counterparty for EU programmes.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Facebookfacebook.com/BulgarianDevelopmentBank
• LinkedInlinkedin.com/company/national-guarantee-fund-ead

Revenue estimate

Valuation estimate

Number of profiles

Profiles3 records

Funding overview

Funding rounds

Investors

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M&A

Investments

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Frequently asked questions about National Guarantee Fund