Access to cheaper loans up to 75% compared to the average interest rate in force today, which is between 7% and 9%, all small, medium and small enterprises have since yesterday through three new programs (funds) launched by the Hellenic Development Bank (ETA-HDB) and became available in all commercial banks.

The reduction in the cost of borrowing for enterprises through the three new programs is achieved by co-financing the loan by 40% from public funds, and for the remaining 60% to be financed by the Bank, the cost of financing will be reduced by 3% during the first two years of the loan, using a partial interest subsidy. rates. The subsidy is estimated to result in an overall reduction in borrowing costs, which in some cases could exceed 75%.

In addition to the subsidy, it is also important to make it easier for businesses to submit requests, which will be carried out electronically on a special platform developed by ETA.

An automated first assessment will also be carried out, which includes the control of companies in relation to the debts they have to the public (tax and insurance funds), as well as in relation to banks through TEIRESIA.

The approval process is promoted through the Know Your Customer (KYC) tool implemented by the Hellenic Development Bank (EAT), through which businesses can “introduce themselves” to banks applying for funding. The platform ensures compliance with the requirements of interested businesses by checking their tax and insurance compliance, as well as their financial behavior in Tiresia, which will be done electronically through the platform at the time of application.

After receiving initial approval of their loan request based on their financial performance, businesses select the bank or banks they will apply for financing to receive a financial proposal.

In total, the resources of the three programs amount to 1.35 billion euros, and additional resources of 35 million euros will cover interest subsidies on loans provided.

Three new co-financing programs available immediately include:

1) Business Liquidity Loans (Liquidity co-financing loans), to cover liquidity needs (working capital) from EUR 10,000 to EUR 1,500,000 with a term of 2 to 5 years and the possibility of a grace period of up to 12 months. The interest rate subsidy in a specific program applies exclusively to businesses that have not previously received funding or support from the Hellenic Development Bank program.

The purpose of the loans is to ensure the smooth operation of the trade turnover of enterprises, as well as to solve the problem of increasing energy costs in the current extraordinary market conditions (increase in energy costs, raw material prices, inflationary pressure). Each loan will be provided for 40% of the capital interest-free, and the remaining 60% will be provided through the Bank, with the possibility of partial subsidization of the interest rate. The subsidy covers the first two years of the loan (from the 1st payment) and will reduce the lending institution’s interest rate by 3% (or 300 points).

The Fund’s initial budget is 240 million euros. With a 60% participation of banks in each disbursement, additional funds of 360 million euros will be mobilized, bringing the total loan portfolio of the Fund to 600 million euros.

2) Green co-financing loans (Green Co-financing Loans) for financing for investment purposes in SMEs that invest in energy modernization, development of green service providers, development of low pollution vehicle charging networks (electric or hydrogen), and investments in renewable energy sources, with the final to reduce emissions and protect the environment.

Loans start at 80,000 and go up to 8,000,000 euros, with a term of 2 to 10 years and a grace period of up to 24 months. The goal of the program is to assist small and medium-sized enterprises in the implementation of Green Transition investment projects in order to reduce gas emissions, protect the environment and reduce energy consumption costs. The Fund pays 40% of the capital without interest for each loan, and the remaining 60% is provided through the Bank. In addition, the Fund subsidizes a part of the interest rate that the Bank applies to its funds (3%) during the first 2 years of the loan (from the 1st payment).

The Fund’s initial available budget is 200 million euros. Taking into account the 60% participation of banks in each grant, additional funds in the amount of 300 million euros will be raised, forming a total loan portfolio of up to 500 million euros.

3) Digital Upgrade Credits (digitization of co-financing loans), an investment goal for the digitalization and digital modernization of the activities of small and medium-sized businesses in order to increase their productivity, their consolidation and the creation of new jobs with high added value. The loan amount varies from 25,000 to 1,000,000 euros, the loan term is from 2 to 10 years with the possibility of a grace period of up to 24 months.

The initial budget of the Foundation is 100 million euros. Given the 60% participation of banks in each grant, additional funds in the amount of 150 million euros will be mobilized, which will form a total loan portfolio of up to 250 million euros. The program provides interest subsidies for two years with additional funds of 9 million euros.

For all loans, the maximum amount of real collateral that the Bank may request for each financing cannot exceed 100% of the loan capital.