New Models in Manufacturing by SMEs

For small and medium-sized enterprises | Budget – BGN 188.37 million (EUR 25,000–400,000 per project) | Deadline – 27.05.2026

A new call for grants has been opened under the “Competitiveness and Innovation in Enterprises” Program 2021–2027 (CIEP), which will fund investments in machinery, equipment, software, patents, industrial designs, and more for the implementation of “new models” in production, processes, products, or services.

Who can apply:

Small and medium-sized enterprises (SMEs), registered under the Commercial Act or the Cooperatives Act, or equivalent entities under the law of a member state of the European Economic Area, meeting the following additional conditions:

• Registered no later than 31.12.2022.

• Achieved average annual net sales revenue for 2022, 2023, and 2024 as follows:

  • Microenterprise ≥ BGN 100,000

  • Small enterprise ≥ BGN 300,000

  • Medium enterprise ≥ BGN 1,000,000

What will be funded:

The call will support activities related to implementing new manufacturing models, in line with the thematic areas of the Smart Specialization Innovation Strategy 2021–2027 (ISIS 2021–2027).

For the purposes of this procedure, a “new model” refers to innovation in the enterprise’s activities, related to producing new or improved goods and/or services, or new and/or improved business processes.

Eligible projects are those introducing at least one “new model” (enterprise-level innovation), related to:

1. New product model (goods and/or services)

Allowed when the project results in:

• Introduction of new goods and/or services for the enterprise (not previously produced/offered), or

• Significant improvement of existing goods and/or services.

“Significant improvement” exists when there is a substantial difference compared to the current product in characteristics such as quality, technical parameters, reliability, durability, efficiency in use, accessibility, convenience, and usability.

2. New process model (business process for production/provision)

Allowed when the project results in:

• Introduction of a new business process for the enterprise, or

• Significant improvement of an existing process by adding/changing one or more functions that substantially differ from the previous way of working.

This includes processes that transform raw materials into goods/services, as well as engineering and related technical testing, analysis, and certification activities supporting production/services.

The new model must be implemented in practice within the enterprise (if product/service – it must be realized as a concrete offer; if process – it must operate in the business), not remain just a concept or prototype.

Implementation must not infringe on intellectual property rights. If the model is protected or has a pending protection application (patent/utility model/design/software), this can be presented as an additional feature.

Projects may include costs for:

• Purchase of machinery, equipment, devices (tangible fixed assets)

• Acquisition of software, patents, utility models, industrial designs, and licenses necessary for the new model implemented in the enterprise (intangible fixed assets)

Total procedure budget: BGN 188,368,368 (EUR 96,311,217.23)

Of this, a target budget for less-developed northern regions (Northwest, North Central, and Northeast regions) is BGN 90,000,000 (EUR 46,016,269.31).

Grant per project:

• Min. EUR 25,000

• Max. EUR 250,000 for micro and small enterprises, and EUR 400,000 for medium enterprises

Important! In addition, the maximum grant for an individual project must not exceed:

• Microenterprises: 100% of the average annual net sales revenue for 2022, 2023, and 2024

• Small enterprises: 60% of the average annual net sales revenue for 2022, 2023, and 2024

• Medium enterprises: 25% of the average annual net sales revenue for 2022, 2023, and 2024

The funding percentage depends on the chosen aid scheme, enterprise category, and project location.

• Under de minimis aid, the grant is 70% for all eligible enterprises.

• Under regional investment aid, the rates are:

For micro and small enterprises:

• Outside the Southwest planning region (SWR) – 70%

• In SWR:

  • Sofia city (capital): 35%

  • Sofia region: 65%

  • Blagoevgrad region: 65%

  • Pernik region: 40%

  • Kyustendil region: 40%

For medium enterprises:

• Outside SWR – 60%

• In SWR:

  • Sofia city: 25%

  • Sofia region: 55%

  • Blagoevgrad region: 55%

  • Pernik region: 30%

  • Kyustendil region: 30%

Project duration: up to 12 months

How to apply:

Project proposals are submitted electronically via the Information System for EU Funds Management and Monitoring in Bulgaria: ISUN 2020.

Who funds:

Funding is provided under the “Competitiveness and Innovation in Enterprises” Program 2021–2027, procedure “New Models in Manufacturing by SMEs.”

Deadline:

Project proposals must be submitted by 27.05.2026.