It is the first financial instrument that aims to support innovative start-ups and existing Micro, Small and Medium Enterprises (SMEs) of any legal form, which promote research and innovation and which document their innovative character through their business plan (Business Plan) and related supporting documents.

The financial tool supports the competitiveness of innovative SMEs, combines for the first time the provision of a loan guarantee and a grant of 20% of the loan capital, offering investment loans & working capital, through the Banks participating in the Program.

Target Audience

Existing and New Micro, Small and Medium Enterprises (SMEs) which:

  • meet at least one (1) of the Innovation Eligibility Criteria required to participate in the program
  • are considered credit-acceptable in accordance with the applicable credit policy and the internal procedures of the credit institutions
  • are bank current (have a debt < 90 days ) on the date of the application

What are the benefits - advantages of the business?

Given the guarantee of the Innovation Guarantee Fund, the beneficiary company enjoys: a lower interest rate on the loan, smaller (or no) collateral and if the conditions for achieving innovation and ESG criteria are met then the company also receives a grant of up to 20% in the form of a reduction of the loan of capital.

Lending limits

The maximum loan amount is €400,000 with a minimum of €25,000

Not allowed:

  • The refinancing/repayment of existing borrowing or lines of credit,
  • The financing of a dividend or share purchase plan

The guarantee percentage of the Hellenic Development Bank amounts to 80% per loan.

The Hellenic Development Bank guarantees Credit Institutions up to 80% of the disbursed capital, with the result that Credit Institutions grant loans on more favorable terms, either through a reduction of the interest rate or through a reduction of any real collateral that they will request from the borrower

The duration of the loan is set up to 10 years, including any grace period of 1 to 3 years.

With a satisfactory budget, the cooperating Credit Institutions in total will allocate €140.7 million to support innovative businesses.