Access to cheaper loans up to 75% compared to the average interest rate which is applied today and which is formed between 7%-9% since yesterday all small, medium and small enterprises through three new programs (funds) launched Greek Development Bank (EAT – HDB) and became available in all retail outlets. banks.

The reduction in the cost of borrowing for businesses through the three new programs is the result of a 40% co-financing of the loan 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 rate subsidy . It is estimated that after subsidies, the average interest rate may even reach 1.75 – 2.25%.

In addition to the subsidy, it is also important to make it easier for businesses to apply, which will be carried out electronically on a special platform developed by Hellenic Development Bank.

The application will be submitted electronically on a dedicated platform developed by the Hellenic Development Bank.

The first assessment will also be carried out in an automated way, which includes checking companies for debt to the state (tax and insurance funds), as well as to banks through Teiresia.

The approval process is promoted through the Hellenic Development Bank’s Know Your Customer (KYC) tool, through which businesses can “introduce themselves” to banks by 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 Teiresia, which will be done electronically through the platform at the time of application. By securing an initial approval of their loan request based on their financial behavior data, businesses will select the bank or banks to which they apply for funding in order 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.

What activities are funded?

Three new easily accessible co-financing programs provide:

1) Liquidity co-financing loans to cover the need for liquidity (working capital) from 10,000 to 1,500,000 euros for a period 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 a bank, with the possibility of partial subsidization of the interest rate. The subsidy covers the first 2 years of the loan (from the 1st payment) and will reduce the lending institution’s interest rate by 3% (or otherwise by 300 units).

The Fund’s initial budget is 240 million euros. Taking into account the 60% participation of banks in each payment, an additional 360 million euros will be mobilized, as a result of which the total loan portfolio of the Fund will reach 600 million euros.

2) Green co-financing loans to finance investments in SMEs that invest in energy modernization, the development of green service providers, the development of low pollution vehicle charging networks (electric or hydrogen), and investments in renewable energy with the ultimate goal of reducing emissions and protecting 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) Loans for co-financing of digitalization an investment goal for the digitalization and digital modernization of SME business activities 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 2 years with additional funds of 9 million euros.

In all loans, the maximum amount of real collateral that the bank can request for each financing cannot exceed 100% of the loan capital.