Working Capital with Interest Rate subsidy due to covid -19

The action Working Capital with Interest Rate subsidy in cooperation with the Hellenic Development Bank, is a new sub-program of "Business Financing - TEPIX II" and aims to support companies that suffer from the adverse effects of COVID - 19
IDEAL FOR
Businesses affected by the pandemic, based on the NACE codes announced by the Ministry of Finance
REPAYMENT METHOD
  • In monthly or 3-monthly instalments that pay interest and capital
INTEREST RATE
0% interest rate

for the first 2 years

OTHER FEATURES
  • The interest rate is 100%(*) subsidized by resources of TEPIX II for the first two years and its stable
  • Take advantage of the favorable terms provided and choose Piraeus Bank by submitting your application at:
    www.ependyseis.gr/mis
IDEAL FOR
Businesses affected by the pandemic, based on the NACE codes announced by the Ministry of Finance
REPAYMENT METHOD
  • In monthly or 3-monthly instalments that pay interest and capital
INTEREST RATE
0% interest rate

for the first 2 years

OTHER FEATURES
  • The interest rate is 100%(*) subsidized by resources of TEPIX II for the first two years and its stable
  • Take advantage of the favorable terms provided and choose Piraeus Bank by submitting your application at:
    www.ependyseis.gr/mis

Eligibility criteria

Eligible companies:

  • SMEs, in accordance with Commission Recommendation 2003/361 / EC
  • The company, when submitting the loan application, to have eligible NACE codes of KYA: No. Δ1α / Γ.Π.οικ.21268 / ΦΕΚ Β / 1991 / 20.03.2020
  • The company must maintain for the entire period of two years receiving a interest rate subsidy at least the same number of employees employed on 19.03.2020 based on the data of the ERGANI system
  • Don’t have outstanding tax or social insurance obligations
  • Are registered, operate and invest in Greece
  • Do not exceed the highest amount as it is defined by the de minimis Regulation
  • Have received a guarantee from EAT ( ETEAN SA) programs that have expired or are in force and do not show inconsistency (overdue) in the guaranteed loan, as well as those companies that have received a loan with the participation of the Entrepreneurship Fund I and do not show inconsistency (overdue).

Non Eligible companies

Companies active in:

  • the fisheries and aquaculture sectors (Regulation (EC) No 104/2000)
  • the primary production of agricultural products
  • processing and marketing of agricultural products (subject to conditions)
  • the coal sector
  • the road freight transport sector for third parties where the requested aid concerns the acquisition of road freight transport vehicles
  • firms in difficulty according to Regulation 1407/2013 and in accordance with point 18 of Article 2 of Regulation 651/2014

Financing features

Working Capital loans to boost the liquidity of businesses that are affected by the pandemic of COVID - 19.

The total amount of the loan cannot exceed € 500,000 per SME and is determined by the following factors:

  • Up to 50% of the company's turnover as reflected in the E3 or the VAT return or the periodic VAT returns for the financial year preceding the application date or
  • Up to 50% of orders this year.
  • For start-ups up to 50% of current year's orders or 80% of credit-based purchases.

The duration of the loan varies from 2 to 5 years with a grace period from 6 to 12 months.

The expenses excluded from Commission Regulation EC 1407/2014 (de minimis) are not considered eligible.

The Bank's participation rate for each loan will be subsidized for the first 2 years by 100% from the resources of TEPIX II, it will be stable and will not exceed 8%. After two years, the interest rate will be based on BEX or Euribor 1M / 3M  plus margin and Contribution of L.128 / 75.

At the end of the two years, the interest rate is paid by the company.

The contribution of L.128 / 75 (0.60%), which is applied to 60% of the loan will be paid by the client from the beginning of the loan.

Repayment method:

  • In monthly instalments that pay interest and capital.
  • In 3-monthly instalments that pay interest and capital.

You can repay all or part of the amount at any time at no cost (e.g. early repayment penalty).

Loan fees:

  • 0.5% of the initial loan amount, with a minimum of €100.

Disbursements:

One-off or gradual disbursements.

The final date for the disbursement of these loans is 31.10.2023, provided that the budget for the program hasn’t been absorbed earlier.


How to get it

To find out more about Working Capital with Interest Rate Fund from the Hellenic Development Bank and how to get it: