Guarantee Fund HDB – TMEDE COVID-19

Working Capital, with 80% guarantee by the Hellenic Development Bank - HDB, aiming to enhance the liquidity of Small and medium-sized enterprises (SME) operating in the construction and engineering sector, which intent to undertake or have undertaken the execution of a public interest project and/or study.
IDEAL FOR

Small and Medium Enterprises (manufacturers, designers, engineers) that intent to undertake or have undertaken the execution of a project and / or public interest study regardless of its stage of execution.

REPAYMENT METHOD
  • Monthly or quarterly installments of capital and interest
INTEREST RATE
Variable

based on Euribor
1M/3M



OTHER FEATURES
  • HDB & TMEDE provide 80% guarantee for each loan
  • The guarantee fee can be subsidized by the Hellenic Development Bank – HDB according to the limits set by the De minimis regulation
IDEAL FOR

Small and Medium Enterprises (manufacturers, designers, engineers) that intent to undertake or have undertaken the execution of a project and / or public interest study regardless of its stage of execution.

REPAYMENT METHOD
  • Monthly or quarterly installments of capital and interest
INTEREST RATE
Variable

based on Euribor
1M/3M



OTHER FEATURES
  • HDB & TMEDE provide 80% guarantee for each loan
  • The guarantee fee can be subsidized by the Hellenic Development Bank – HDB according to the limits set by the De minimis regulation

Eligibility Criteria

The program is open to Small and Medium Enterprises (definition of SMEs (Annex I of EP 651/2014) of the construction and engineering sector, which intent to undertake or have undertaken the execution of a public interest project and study that operate legally in Greece.

The following eligibility criteria must be met:

  • They intent to undertake or have undertaken the execution of a project and / or study of public interest and are active in specific eligible sectors
  • They have been set up until the time of submitting the application for financing to the bank
  • As at 31.12.2019 they are not considered problematic (as mentioned in point 18 of article 2 of Regulation 651/2014). In case of Very Small and Small Enterprises regardless of whether they were “in difficulty” on 31.12.2019, they are eligible provided that they have not been subject to collective insolvency proceedings under national law and have not received rescue aid or restructuring aid, or if they have received rescue aid , they have repaid the loan or terminated the guarantee agreement at the time of submitting this application or if they have received restructuring aid, they are no longer subject to a restructuring plan at the time of submitting this application. This also applies to SMEs which, even if they were in difficulty on 31.12.2019, have taken corrective actions before submitting the funding request as well as to those who submit an application to PSKE from 1 July 2022 onwards under the De minimis regulation.
  • They do not have overdue debts over 90 days when submitting application for funding
  • There are no grounds for exclusion of article 40 of law 4488/17 (A 137/139/17), as in force,
  • There is no pending recovery order of previous illegal and incompatible state aid based on an EU or WEU decision
  • In case the enterprise has previously joined HDB (formerly ETEAN) programs that have expired or are in force, should not show adverse transactional behavior in debt repayment, such as a loan complaint 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.

Features

Purpose

The enhancement of the liquidity of of SMEs in the construction and engineering sector, which intent to undertake or have undertaken the execution of a public interest project and/or study, regardless of the stage of execution of the project or study, through the provision of guarantees. The aforementioned guarantee facility, aims to cover the increased liquidity needs of the eligible SMEs, as a consequence of the COVID -19 pandemic and the energy crisis caused by the war in Ukraine.

This funding should in no way be related to:

  • refinancing / repayment of existing borrowing or credit lines,
  • financing of a dividend payment program or purchase of shares,
  • financing of Acquisitions and Mergers

Amount

From €3,000 up to €200,000

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

  • 2 X annual salary cost 2019, or
  • 25% of the 2019 turnover
  • For start-ups initiated after 2019, 100% of the documented liquidity needs, starting from the date of the loan and the next 18 months on

Duration

1 to 5 years


Currency

Euro (€)


Interest Rate

Floating based on Euribor 1Μ/3Μ

Interest rates are charged with the interest rate margin and the contribution of L.128 / 75, which currently amounts to 0.60%
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

Early partial or total repayment free of charge.


Loan’s Fees

Based on existing pricing policy of expenses and commissions for Working Capital Loans


Guarantee Fee Rate

The Guarantee Fund offers the option of covering the Guarantee fee in the form of state aid, within the limits set by the program. The Guarantee Fee is calculated as a percentage per annum and increases progressively according to the loan duration, as set out in the following table:


Enterprise
1st year
2nd & 3rd year
4th & 5th year

SME
 
0,25
 
0,50
 
1,00

Disbursement

One-off or Partial instalments


Collaterals

Reduced collateral requirements due to the guarantee provided by the Guarantee Fund.


Availability Period

The availability period is until 31.12.2022, unless the budget of the program has been absorbed earlier.

How to get it

Application in www.ependyseis.gr/mis

  1. Enter www.ependyseis.gr/mis with your personal codes (in case of non-existing codes you must register)
  2. Fill in the details of the business to be financed in the application
  3. Select Piraeus Bank to submit your request
  4. Finalize and submit your application to the system

Application for financing in a branch of Piraeus Bank

Once the application process has been completed at www.ependyseis.gr/mis, you may visit a Piraeus Bank branch, carrying the printed application form.


For more information:


The supported financing is realized with the Guarantee offered by the Guarantee Fund HDB- TMEDE, co-financed by the Greek State and Engineers and Public Works Contractors Fund.