Purpose
Investment loans to finance the digitization and digital upgrading of operations/activities, productivity growth, expansion and the creation of new jobs for small and medium-sized enterprises.
Funding Eligibility Criteria:
- Contracts that concern new financing from the Bank.
- The purpose of the financing is defined as "investment", and in no case does it relate to (a) refinancing of existing borrowing or lines of credit, (b) financing program for the payment of dividends or share purchases, or (c) financing of Acquisitions and Mergers,
- Be in the form of a regular maturity loan with a term of 2 to 10 years, including any grace period of up to 24 months.
- To be expressed in euros.
- Proof through the submitted business plan and during implementation by submitting relevant documents that the financed activities concern one or more of the following key areas:
- Development of digital infrastructure (e.g. internet, broadband, mobile networks, satellite technologies, use of data centers, end-user devices, internet of things (IoT), applications, websites, API integration and cloud-based services).
- Investments in equipment (Hardware) and automation solutions.
- Software, application and data investments.
- Business process improvements facilitated by one or more digital technologies.
- Development of a strategic monitoring system.
- Human capital development (e.g. learning and development initiatives related to the digital/and IT upskilling/training of employees and the employment of temporary or permanent IT specialists)
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- Purchase of Services for other digital upgrade costs, such as digital advertising/promotion (digital marketing), presence on social media (social media), creation of videos to present the company's products, creation of digital content, etc. as well as costs for implementation and certification in digital security standards (e.g. iso27001) and/or digital functionality.
- Costs of consultants/experts for:
- The analysis of the needs of the business and the correct guidance for adopting the best solution regarding the digital upgrade and
- The preparation of a study for the overall management of the investment.
- Digital intensive improvements namely, the implementation of part of the business of one or more digital technologies related to specific areas such as 3D printing, robotics, IoT, big data and artificial intelligence, drones, virtual reality.
- In any case, the Eligible Expenses will not concern:
- The purchase of land, unless it is technically necessary for the investment, in which case it can be financed up to 10% of the total business plan.
- The agricultural land market.
- The purchase of goodwill, licenses or rights to exploit mineral resources and production rights in the agricultural sector
- Duties, taxes, fees and levies.
- he loan will not be used to finance activities excluded by Regulation (EU) no. 1407/2013 of the Commission of 18 December 2013, regarding the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid.
Amount
€25.000 - €1.000.000 maximum per company
Duration
From 2 up to 10 years (including grace period)
Interest Rate
Fixed for the entire loan duration or Variable based on Euribor 3m plus margin reduced by 40%
The interest rates are charged with the interest margin and the contribution of L.128 / 75, which currently amounts to 0.60%.
The customer's final interest rate is determined on the basis of a creditworthiness assessment.
Interest rate subsidy
Two-year interest rate subsidy of 3% which:
- Is irreversibly terminated in the event of an overdue payment for more than 30 days
- Does not cover the levy of Law 128/75 and any late payment interest rate that, in any case, is due by the customer.
Repayment
- For Small Businesses and Professionals (Turnover ≤ €2.5 million):
Monthly or quarterly installments combining principal and interest
- For Medium-sized Enterprises (€2.5 million Turnover ≤ €50 million) :
Monthly quarterly, semi - annual, annual installments of principal and interest combined or principal and interest apart.
- For Medium-sized Enterprises, option of Bullet/balloon payment up to 70% of the initial capital of the loan is provided
Grace period
Up to 24 months (during the grace period only the interest due will be paid).
Early repayment
Early partial or full repayment is possible without any charge. The capital repaid can not be refinanced
Currency
Euro (€)
Disbursement:
Disbursements can be either one-off or partial.
The first disbursement (one-time total or first installment) of the amount of the Contract should be made within four (4) months from the signing of the Contract.
- the 1st disbursement will obligatorily take place within four (4) months from the date of signing the Contract with a final date of June 30th, 2025, and
- the final date of completion of the disbursements is set within 36 months from the 1st disbursement and in any case until 30.6.2026 (disbursements final date), whichever date from the above comes first.
Co-financing from HDB
The loans are co-financed by 40% from interest – free capital from HDB
Interest rate subsidy
Two-year interest rate subsidy of 3% which:
- Is definitively terminated in the event of an overdue payment of more than 30 days
- Does not cover the levy of Law 128/75 and any late payment interest that, in any case, is borne by the customer.
Collaterals
Up to 100% of the loan amount.
Offering Period
Until 30.06.2025