Micro, Small and Medium-sized enterprises according to the SME law (up to 249 employees) as well as Small Mid-Caps (up to 499 employees) registered and operating on the territory of Bulgaria which comply with the following criteria:

• The enterprise is not an "undertaking in difficulty"(within the meaning of Commission Regulation (EU) No C (2014) 651/2014 of 17 June 2014).
• The Final Recipient is not subject to collective insolvency proceedings.
• The Final Recipient is not delinquent (for more than 20 days) or in default in respect of any transaction (in the case of refinancing, including the transaction that is being refinanced) granted by Raiffeisenbank or by another financial institution.
• The Final Recipient shall not have a substantial focus in one or more restricted Sectors set in the Pan European Guarantee Fund Guarantee Agreement.

Restricted activities:

• Any production, trade or other activity, which is illegal under the laws or regulations of the Republic of Bulgaria.
• Export related activities towards third countries or Member States, namely financing directly linked to the quantities exported, to the establishment and operation of a distribution network or to other current expenditure linked to the export activity.
• Cross-border trade in waste and waste products unless compliant with the Basel Convention and the underlying national and EU regulations.
• Production or use of or trade in hazardous materials such as radioactive materials.
• Production or trade in pharmaceuticals, pesticides/herbicides, chemicals, ozone depleting substances and other hazardous substances subject to international phase-outs or bans.
• Production and trade with tobacco.
• Gambling, casinos and equivalent enterprises or hotels hosting such facilities.
• Ammunition and weapons, military/police equipment and others.