Guarantee Fund for COVID 19 Phase III

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.
Very Small Businesses that aim to reinforce their liquidity needs due to the pandemic
  • In monthly or 3 monthly instalments

based on Euribor

  • The Fund offers its guarantee up to 80% for each loan.
  • Guarantee Fee can be subsidized by the Fund
Very Small Businesses that aim to reinforce their liquidity needs due to the pandemic
  • In monthly or 3 monthly instalments

based on Euribor

  • The Fund offers its guarantee up to 80% for each loan.
  • Guarantee Fee can be subsidized by the Fund

Eligibility Criteria

The program is open to Very Small Businesses operating legally in Greece, of all types including businesses active in the sectors of agricultural production, fisheries and aquaculture.

The following criteria must be met:

  • As at 31.12.2019 they had a Turnover of up to 1,000,000 euros or have been established up to the time of submission of the financing application 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)
  • They are considered creditworthy in accordance with current credit policy and internal procedures of credit institutions
  • They do not have overdue debts over 90 days when submitting application for funding
  • They do not meet the reasons 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 been included in the A 'and B' Cycle of the Guarantee Fund
  • 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.

Non Eligible Sectors/ Enterprises:

Businesses operating:

  • In illegal activities in accordance with Greek and Community law.
  • In the production & trade of weapons and ammunition of any kind.
  • In the manufacture, processing and marketing of tobacco products
  • In research and development of techniques related to online gambling / online casinos / or give illegal access to electronic data networks.
  • In research and development or technical applications related to: (i) human cloning for research or therapeutic purposes, (ii) Genetically Modified Organisms ("GMOs")

In addition:

  • Holding Companies
  • Financial sector enterprises (credit institutions, leasing companies, factoring, payment institutions, credit companies, claim management companies), foreign exchange exchanges, insurance and reinsurance companies, distributors of insurance products as well as financial institutions.
  • Public bodies and their subsidiaries, local authorities and their subsidiaries.
  • Enterprises based in Non-Collaborative Judgments.



Working Capital Loans in order to strengthen the liquidity of companies which are, directly or indirectly suffering from the adverse effects of the spread of COVID - 19.


From €3,000 up to €250,000

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

  • 250,000 euros or
  • 25% of the total turnover of the Company during the year 2019 (for Companies established until 31/12/2019) or
  • the amount resulting from the liquidity needs to be met by the beneficiary from the date of grant for the next 18 months. Liquidity needs should be determined through self-certification by the Beneficiary (for Businesses with a recommendation from 1/1/20 onwards).

Duration of Finance

Loan duration varies from 1 to 5 years including the grace period.


Euro (€)

Interest Rate

Variable based on the Euribor 1M/3M

The interest rates are charged with the interest margin and the contribution of L.128 / 75, which currently amounts to 0.60% (where this is provided).
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.


With monthly or 3 monthly installments.

Early repayment option

Early partial or full repayment is possible without penalties.

Loan’s Fees

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

Guarantee Fee Rate

Guarantee Fee Rate is paid in total at the 1st disbursement and is charged for the total loan duration. It is calculated only for the Guaranteed loan amount (80% Guarantee Rate). The Guarantee Fund offers the option to those enterprises that want, to cover the Guarantee fee rate in the form of state aid. The relevant amount of guarantee fees are set in the following table:

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


One-off or Partial instalments


Reduced collateral requirements due to the guarantee provided by the Guarantee Fund The availability period is until 30.06.2022, unless the budget of the program has been absorbed earlier.

How to get it

You may submit your online Application on

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

The Guarantee is provided by the Guarantee Facility COVID 19 by the Hellenic Development Bank , co-financed by the European Regional Development Fund (ERDF) and the Greek State, and with the contribution of the Operational Program Competitiveness, Entrepreneurship and Innovation (EPANEK).


The "COVID-19 Business Guarantee Fund" was created to support access to loan capital through a capped guaranteed portfolio for businesses. The aim of the Fund is to mitigate the impact of the COVID-19 pandemic on business operations by reinforcing their liquidity with working capital loans. The Fund is implemented under the European Commission ’s temporary framework for state aid measures to support the economy in the current COVID19 outbreak and it is co-financed by Greece and European Regional Development Fund in the context of the Operational Programme Competitiveness, Entrepreneurship, and Innovation 2014-2020 (EPAnEK). The third phase of the Fund is financed through the framework of the EU's response to the pandemic COVID-19 - React EU. The Hellenic Development Bank (HDB) will ensure the transfer of the required resources to the Financial Institutions.