Development Fund of Western Macedonia (TADYM) COVID 19 - Working Capital with Interest Rate Subsidy

Piraeus Bank in cooperation with the Hellenic Development Bank – HDB provides Working Capital loans, with a guarantee rate of 80% of each loan, offered by the Guarantee Fund for COVID 19. These loans aim to support the economic activity of the enterprises that have been affected by COVID 19.
IDEAL FOR
Small and Very Small Businesses of in the Region of Western Macedonia affected by the pandemic.
REPAYMENT METHOD
  • Monthly or quarterly instalments
  • Payment of capital and interest
INTEREST RATE
0%(*) interest rate

for the first 2 years


OTHER FEATURES
  • The interest rate is 100%(*) subsidized by resources of TADYM for the first two years and it is fixed
  • Reduced Collateral
  • Application submission at www.ependyseis.gr/mis with bank of choice Piraeus Bank
IDEAL FOR
Small and Very Small Businesses of in the Region of Western Macedonia affected by the pandemic.
REPAYMENT METHOD
  • Monthly or quarterly instalments
  • Payment of capital and interest
INTEREST RATE
0%(*) interest rate

for the first 2 years


OTHER FEATURES
  • The interest rate is 100%(*) subsidized by resources of TADYM for the first two years and it is fixed
  • Reduced Collateral
  • Application submission at www.ependyseis.gr/mis with bank of choice Piraeus Bank

Eligibility Criteria

The program is open to Small and Very Small Businesses of any legal form that cumulatively meet the following conditions:

  • They operate legally in the Region of Western Macedonia
  • They have no outstanding insurance and tax obligations
  • As at 31.12.2019 they are not considered “problematic” (as mentioned in point 18 of article 2 of Regulation 651/2014). In case a company became a “problematic” during the period from 1.1.2020 to 30.6.2021 then it should have not received:
  • –  rescue aid (or has received rescue aid but repaid the loan or terminated the guarantee contract when applying for funding) or
  • –  restructuring aid (or has received restructuring aid but is no longer subject to a restructuring plan when applying for funding
  • They do not have overdue debts over 90 days when submitting application for funding
  • They do not meet the criteria for the exclusion of article 40 of law 4488/2017 (Government Gazette 138/139)
  • There is no pending recovery order of previous illegal and incompatible state aid based on an EU or WEU decision
  • They have not received another loan in the context of the present action of TADYM
  • In case the enterprise has previously joined HDB (formerly ETEAN) programs that have expired or are in force, it should not demonstrate adverse transactional behavior in debt repayment, such as a loan contract termination or relevant overdue debts over ninety (90) days or in the case of adverse transaction behavior the recipient has fully repaid his debt before submitting the application for funding or in the event of adverse transaction behavior: (a) in the case of a guarantee scheme, the amount of a guarantee owed has not been paid; Once the said debt has been confirmed to the competent Tax Office, it has been included in a regulatory regime, which continues to be in force on the date of submission of the application.

Obligations of funded companies

  • They should not show overdue debts at the time of claiming the interest for the specific funding
  • They must maintain for the first two years receiving the interest rate subsidy at least the same number of employees as those employed on 30.04.2021, based on the data of the ERGANI system.

Non Eligible companies

  • Companies operating in the Financial sector (credit institutions, leasing companies, factoring, payment institutions, credit companies, claim management companies), exchange bureaus insurance and reinsurance companies, distributors of insurance products as well as financial institutions.)
  • Companies in difficulty according to Regulation 1407/2013 and according to point 18 of article 2 of Regulation 651/2014
  • Holding Companies
  • Public bodies and their subsidiaries, local authorities and their subsidiaries

In addition:

Features

Purpose

Working Capital Loansin order to enhance the liquidity of companies operating in the region of Western Macedonia and which are adversely affected by the COVID – 19 pandemic.

Such funding should in no way be related to: (a) refinancing of existing borrowing or credit lines, (b) financing of a dividend or share purchase program, or (c) financing of acquisitions and mergers.

VAT is eligible as an expense.


Amount

From €5.000 up to €50.000 per company with the following restrictions

The amount of the initial capital of the Loan does not exceed the following:

  • for companies established before2019, up to 25% of the total turnover of the company during year 2019 or
  • for companies established after 2019 the amount will derive from the liquidity needs to be met by the beneficiary from the date of the loan and for the next 18 months and which must be proven with sufficient justification and documentation

Duration of Finance

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


Currency

Euro (€)


Interest Rate

The Bank's participation rate for each loan will be 100% subsidized for the first 2 years from the resources of TADYM, it will be fixed and will not exceed 8%.
After two years, the interest rate will be based on:

  • Base Loan Rate (BLR) of Piraeus Bank or
  • Euribor 1M / 3M plus margin and Levy of L.128 / 75.

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

(*) The interest rates are charged with the interest margin and the Levy of L.128 / 75, which will be charged to the customer from the beginning of the loan and for the whole amount. The Levy of L.128 / 75 is currently set at 0.60% (where it is charged ). The final interest rate of the customer is formed based on the current pricing policy of the Bank and the general terms of the Action.


Repayment

With monthly or quarterly installments.


Early repayment option:

Early partial or full repayment is possible without penalties.


Loan’s Fees:

0.5% on the initial loan amount


Disbursement:

One-off or Partial instalments


Collaterals

Personal or corporate guarantees and, where applicable, collaterals. In case of collaterals, these can not exceed 50% of the loan amount.

How to get it

You may submit your online Application on www.ependyseis.gr/mis

Once the online application is submitted you may visit one any Piraeus Bank branch or you can Call 210 3288000




The supported financing is provided by the Development Fund of Western Macedonia (TADYM) managed by the Hellenic Development Bank (EBA) with funds from the Public Investment Program and the Region of Western Macedonia.