The financing tool of the Hellenic Development Bank (HDB) "Business Liquidity Loans" was activated. The program was created to provide favorable terms for working capital loans to small and medium-sized enterprises, with 40% interest on the capital and the possibility of a two-year partial interest rate subsidy.
The aim of the program is to support small and medium-sized enterprises in order to cope with the current market conditions and further develop their business activity.
The amount of the loan ranges from €10,000 to €1,500,000.
The duration of the loan can be from two (2) to five (5) years with the possibility of obtaining a capital grace period of up to 12 months
State Aid Framework
Regulation (EU) no. 1407/2013 (De Minimis).
The Fund pays for each loan 40% of the capital without interest, while the remaining 60% is granted through the Credit Institution. In addition, there is the possibility of a partial subsidy of the interest rate applied by the Credit Institution to its funds (3%) for the first 2 years of the loan and it concerns, exclusively, small and medium-sized enterprises that have not received a business loan from the programs of the Hellenic Development Bank .
-The financed company is fully exempt from interest for the part of the loan that is co-financed by the Fund, i.e. 40% of each loan, given that this amount is provided by the Fund interest-free.
- Each Credit Institution that participates in the Fund is obliged to reduce the interest rate of each loan by at least 25 basis points (bps) per year from the interest rates it would apply to corresponding financing without the Fund's subsidy.
-The maximum amount of real collateral that the Credit Institution may request in each financing may not exceed 100% of the loan capital.
Additionally, exclusively for small and medium-sized enterprises that have not received a business loan from the Hellenic Development Bank's programs, the Fund subsidizes part of the interest rate that the Credit Institution applies to its funds, i.e. 60% of each loan. The subsidy concerns the first 2 years of the loan (from the 1st disbursement) and will reduce the interest rate of the Credit Institution by 3% (or otherwise by 300bps), which significantly reduces the total cost of borrowing for the company.
The Credit Institution receives debt and/or real collateral, in accordance with its credit policy. The maximum amount of collateral that can be required cannot exceed 100% of the loan capital.
The loan can be disbursed either in one go or in installments.
I. In the event of a one-off disbursement of the loan, it will be made compulsorily within a period of four (4) months (with no possibility of extension) from the date of signing the loan agreement.
II. In the case of partial disbursements: a) The 1st disbursement will be made compulsorily within a period of four (4) months (with no possibility of extension) from the date of signing the Loan Agreement, b) The final date of completion of disbursements is within 36 months from the 1st disbursement and in any case by 30/6/2026, whichever date from the above comes before.