The foundation meeting of the Bulgarian American Credit Bank’s shareholders was held on December 22, 1995, and BACB was registered with the Sofia City Court pursuant to a court resolution dated December 3, 1996. The founder of the Bank is the Bulgarian American Enterprise Fund (BAEF). BAEF is a private corporation established in the US pursuant to the United States Support for East European Democracy Act 1989 (the SEED Act), the primary aim of which is to encourage the entrepreneurship and to support the development of the former communist countries from Central and Eastern Europe. Under the SEED Act the BAEF was granted USD 57.8 million to invest in Bulgaria for the purposes of promoting the development of the private sector by supporting small- and medium-sized businesses in different sectors of the economy.
Initially, the Bank was granted a limited banking license by BNB. The limited license of BACB restricted its aggregate amount of loan extended up to the amount of the debt and equity funds provided by its shareholders. The first two lending programs were targeted at small- and medium-sized businesses and at the tourism sector. In 1998 the banking license was expanded and included permission for lending in amount greater than the funding received from BAEF as well as to perform wide range of banking services.
Subsequently, the revised banking license includes all banking services as per the Credit Institutions Act (CIA) with the exception of renting safe deposit boxes.