Purpose
The financing of SMEs to support and expand their operations, according to the Business Plan submitted each time. The Fund will support the development of business activity and the strengthening of employment in the country, through:
- Special Purpose Working Capital Loans
- Investment Loans
(i) the refinancing/repayment of existing borrowing, (ii) the financing of a dividend payment plan or the purchase of shares
(iii) the financing of Acquisitions and Mergers and
(iv)the purchase of land for an amount exceeding 10% of the Fund's contribution to the respective loan.
Amount
Working Capital: From €10,000 up to of €500,000 per company
Investment Loans according to the Aid Regulation:
- From €20,000 up to €1,500,000 per company under De minimis
- From €20,000 up to €8,000,000 per company under General Block Exemption Regulation (GBER)
Duration
- Working Capital: From 2 up to 10 years (including grace period)
- Investment Loans: From 5 up to 12 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 for the part of the bank’s funds (60%), which currently amounts to 0.60% .
The customer's final interest rate is determined on the basis of an assessment of its Creditworthiness.
Interest rate subsidy
Two-year interest rate subsidy of 3% which:
- Is definitively terminated in the event of an overdue payment of more than 90 days
- Does not cover the levy of Law 128/75 and any late payment interest that, in any case, is borne by the customer.
Repayment
- For Small Businesses and Professionals (Turnover ≤ €2.5 million):
Monthly or quarterly installments combining principal and interest
- For Medium Enterprises (€2.5 million
Monthly quarterly, semi - annual, annual installments of principal and interest combined or principal and interest apart
Balloon payments are offered for Working Capital cases, on the condition that the remaining capital due will not be grater than 70% of the disbursed loan at the last 25% of the total loan term.
Early repayment
Early partial or full repayment is possible without any charge. The capital repaid can not be refinanced.
Currency
Ευρώ (€)
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.
In case of partial disbursements:
- the 1st disbursement will obligatorily take place within four (4) months from the date of signing the Contract, and
- the final date of completion of the disbursements is set within 24 months from the 1st disbursement and in any case until 31.12.2029 (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
Collaterals
Up to 100% of the loan amount.
Availability Period
The availability period expires on 31.12.2029