A new opportunity is opening up for Bulgarian small and medium-sized enterprises (SMEs) to consider the capital market as a viable alternative or supplement to traditional bank financing when raising capital.

The Executive Agency for the Promotion of Small and Medium-sized Enterprises (EAPSME) is implementing a project under the ‘Competitiveness and Innovation in Enterprises’ Programme 2021–2027, aimed at facilitating SMEs’ access to equity financing. Through the support provided, enterprises can obtain the necessary expertise to raise funds via the capital market and to prepare the relevant procedures.

The project focuses on the preparation and issuance of shares on a regulated market or on the BEAM SME growth market, as well as on preparing to raise capital via the SpaceCrowd crowdfunding platform (developed jointly by the Bulgarian Stock Exchange and the Central Depository). The support is also aimed at newly registered enterprises and seeks to facilitate compliance with the legal, financial and administrative requirements associated with equity financing.

It is important to note that the programme does not provide investment capital directly to enterprises. Support is provided for the costs of preparing for and carrying out the process – legal and financial-accounting services, assessment of readiness for listing or raising capital, company restructuring, preparation of a prospectus or admission document, assistance with the public offering, preparation of documents for equity financing, and presentation of the company to potential investors.

SMEs can choose between three options: a regulated market, BEAM or SpaceCrowd. The maximum amount of eligible expenditure is EUR 60,000, EUR 35,000 and EUR 25,000 respectively. Following successful capital raising, the EAPSME reimburses up to 90 per cent of the costs incurred, provided that a minimum amount of capital raised of EUR 350,000 is reached for the regulated market, EUR 200,000 for BEAM and EUR 100,000 for SpaceCrowd.

The capital must be raised within specified timeframes – up to 12 months for the regulated market and up to 9 months for BEAM and SpaceCrowd, counted from the conclusion of the relevant contract with an investment intermediary or adviser on the BEAM market.

Eligible applicants are Bulgarian traders who meet the criteria for micro, small or medium-sized enterprises and have no outstanding public liabilities to the state. Applications must be accompanied by a set of documents signed with a qualified electronic signature, and must be submitted electronically via b2bconnect.bg.

The deadline for applications is 15 October 2027 for the regulated market and 15 January 2028 for BEAM and SpaceCrowd.

The programme offers Bulgarian SMEs the opportunity to diversify their sources of funding and move beyond traditional bank loans to raising equity capital, whilst significantly reducing the costs associated with preparing to access the capital market.

This article has been prepared for and is part of the Legal Digest issued by Penkov, Markov & Partners. The publications therein do not constitute legal advice and are not binding. Penkov, Markov & Partners reserves all rights to this material, and any distribution thereof is subject to the prior written consent of the law firm.