The objectives of the scheme are to implement the policy of Sofia Municipality to support small and medium-sized businesses in its territory by guaranteeing part of the credit risk on loans provided by financial institutions to small and medium enterprises registered or operating in Sofia Municipality.

The Municipal Guarantee Fund guarantees loans to companies that are registered or operate on the territory of Sofia Municipality. The fund guarantees to banks up to 50% of the loan to small companies, but not more than BGN 100,000, regardless of the loan amount.

D Commerce Bank AD and the Municipal Guarantee Fund for Small and Medium Enterprises (SMEs) in Sofia Municipality (MGFSME-SM) signed a new agreement for financing small and medium enterprises operating in Sofia Municipality. With this agreement MGFSME-SM, jointly with D Commerce Bank AD, provides a new opportunity to create a favorable environment for the development of small and medium enterprises. The main goal of the Municipal Guarantee Fund (MGF) is to pursue a policy to stimulate the SME sector and create optimal conditions for their development.