Funding for Enterprises in the Defense Industry

Under the “Competitiveness and Innovation in Enterprises” Programme 2021–2027, a procedure has been launched to support micro, small, medium-sized and large enterprises to increase and modernize their production capacity for:

• defense-related products (weapons, ammunition, military systems, specialized equipment and technologies);

• dual-use items (products that can be used for both civilian and military purposes, in accordance with Regulation (EU) 2021/821).

  
  

Who Can Apply

Eligible are micro, small, medium-sized and large enterprises that:

1. Were registered no later than 31 December 2022;

2. Have average annual net sales revenue for 2022, 2023 and 2024 as follows:

   • Micro and small enterprises – at least BGN 200,000;

   • Medium-sized enterprises – at least BGN 1,000,000;

   • Large enterprises – at least BGN 5,000,000;

3. Operate in the eligible economic sectors according to the Classification of Economic Activities (NACE Rev. 2025):

   • Sector C – Manufacturing;

   • Sector K – IT and telecommunications (Divisions 62 and 63);

   • Sector N – Professional activities and scientific research;

4. Have at least 20% of their 2024 revenue generated from activities falling within the eligible sectors.

What Is Funded

Investments in:

1. Tangible Fixed Assets (TFA)

These are physical assets with long-term use, such as:

• machinery and production equipment;

• facilities;

• construction and installation works (CIW) improving buildings or production premises.

Important:

• CIW costs may not exceed 50% of the total project budget;

• They must lead to a real increase in production capacity and asset value.

2. Intangible Fixed Assets (IFA)

These include:

• software;

• patents and licenses;

• know-how (specialized knowledge and technologies).

For large enterprises under the “Regional Investment Aid” scheme, these costs may not exceed 50% of the total project budget.

Amount of Funding

Total Budget of the Procedure

EUR 70,641,447.37, allocated by regions and categories of enterprises.

Grant per Project

Under the “de minimis” scheme(simplified state aid scheme with lower amounts):

• from EUR 51,129.19 to EUR 300,000;

• aid intensity – up to 70% of eligible costs.

Under the “Regional Investment Aid (RIA)” scheme(state aid aimed at regional development):

• micro and small enterprises – up to EUR 511,291.88;

• medium-sized enterprises – up to EUR 1,533,875.64;

• large enterprises – up to EUR 3,579,043.17.

The maximum funding rate depends on:

• the size of the enterprise;

• the region where the project is implemented (higher rates outside the Southwestern Planning Region).

  
  

Project Duration

Up to 18 months.

How to Apply

Project proposals must be submitted online through the Information System for Management and Monitoring – ISUN 2020.

Funding Authority

The procedure is financed under the “Competitiveness and Innovation in Enterprises” Programme 2021–2027, procedure BG16RFPR001-6.001 “Strengthening Industrial Capacity in the Field of Defense Capabilities.”

Deadline

15 April 2026