BB MICRO-CREDIT

Following nearly one and a half years of development with Microloan Corporation, BB Foundation has been participating in preparing small enterprises for the BB Micro-Credit Program since Sept. 2004.

The BB Micro-Credit has created a unique opportunity by engaging in lending to formerly ignored small businesses, which the banking sector had considered to be non-profitable. As compared to other micro-credit arrangements, this program is unique in that a local commercial lends its own funds relying on the experience the BB Business Development Foundation has accumulated in analyzing small businesses over the past 10 years.

WHAT OBJECTIVES ARE ELIGIBLE UNDER THE NEW BB MICRO-CREDIT PROGRAM?

The credit is designed to serve a source of working capital financing:

purchasing raw materials, procurement or imports, financing daily expenditure, smaller capital expenditure (with repayment under a year).

WHO ARE ELIGIBLE FOR TAKING OUT BB MICRO-CREDIT?

YOU ARE ELIGIBLE, IF YOU RUN A SMALL BUSINESS AND MEET THE FOLLOWING CRITERIA:

• 0-10 employees

• a controlling Hungarian owner

• no current business loans

• form of business: private entrepreneur (sole trader), unlimited partnership or general partnership

• businesses that have been operational for at least two years

• the business or the entrepreneur (sole trader) should be officially registered

• the business or the entrepreneur should have no overdue accounts payable to the tax authority

BB MICRO-CREDIT LENDING TERMS: 

• Loan amount between HUF 500,000 and 3,000,000

• Loan matures in 3 - 12 months

• Fix rate of interest to maturity, currently 19 %

• Interest payments due on the fifth business day of each month