Purpose
The financing of SMEs for the implementation of their investment plan that has been subject to an aid scheme of the Development Law 4887/2022 and provided that the cumulation limits of state aid are met (according to article 14 of EC 651/2014), through:
- Long term loan to cover their private participation. A prerequisite is that bank lending has been indicated in the financing scheme of the investment plan.
- Short term loan in advance of the approved grant referred to their investment plan
It is mentioned that 25% of the subsidized investment should not comprise any type of State aid, public support or provision.
The following financing scopes are not accepted:
- Refinancing/restructuring of existing loans,
- Financing programs of dividends’ payments or shares’ purchase
- Financing acquisitions and mergers
Amount
€50.000 - €10.000.000 per investment
Duration
- Long term loan: From 3 up to 10 years (including grace period)
- Short term loan: From 1 up to 5 years
Interest Rate
Floating interest rate based on Euribor 3m (plus spread)
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 based on the assessment of its Creditworthiness.
Repayment:
Long Term Loans
- For Small Businesses and Professionals (Turnover ≤ €2.5 million):
Monthly or quarterly installments combining principal and interest
- For Medium Enterprises (€2.5 million /turnover ≤ €50 million):
Monthly, quarterly, semi - annual, annual installments of principal & interest combined or principal & interest apart.
Short Term Loans
Grace period
Up to 36 months (during 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
One-off or Partial instalments
- the 1st disbursement will obligatorily take place within four (4) months from the date of signing the Contract (no extension possible)
In case of partial disbursements:
- the final date to complete the disbursements is set within 36 months from the date of signing the Contract.
Collaterals
- Long Term Loan: Up to 40% of the loan amount
- Short Term Loan: the approved grant referred to the investment plan
Availability Period
The availability period is until 31.12.2025 (final date of signing the loan contract)
Guarantee Fee
Due to the 80% guarantee provided on each loan granted by HDB to the Bank, HDB will receive from the company a guarantee fee, according to one of the following types:
- With State Aid: Guarantee Fee is calculated on an annual basis on the guaranteed loan amount and is paid once upon the 1st disbursement for the total duration of the loan. It amounts to 0.20% of the guaranteed loan amount.
- Without State Aid: Guarantee Fee is calculated on the guaranteed loan amount and is based on the safe-harbour premiums of the European Commission’s Notice on guarantees (2008/C 155/02) which depend on the customer's rating. It is paid once upon the 1st disbursement for the total duration of the loan