Guarantee Fund for COVID 19 _Phase I

Piraeus Bank in cooperation with the Hellenic Development Bank 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
SMEs and Large Corporate Enterprises that aim to reinforce their liquidity needs due to the pandemic
REPAYMENT METHOD
  • In monthly or 3 monthly or 6 monthly instalments
INTEREST RATE
Variable

based on Euribor


OTHER FEATURES
  • The Fund offers its guarantee up to 80% for each loan.
  • Guarantee Fee can be subsidized by the Fund
IDEAL FOR
SMEs and Large Corporate Enterprises that aim to reinforce their liquidity needs due to the pandemic
REPAYMENT METHOD
  • In monthly or 3 monthly or 6 monthly instalments
INTEREST RATE
Variable

based on Euribor


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

Eligibility criteria

Eligible Enterprises

SMEs & Large Enterprises that operate legally in Greece, including enterprises that are operating in the sectors of agricultural production, fisheries and aquaculture.

Moreover the criteria that should be fulfilled are as follows:

  • not to be characterized as "problematic" (as mentioned in point 18 of article 2 of Regulation 651/2014), on 31.12.2019
  • not to have overdue debts for more than 90 days either on the Contract date or on 31.12.2019
  • not to meet the reasons for the exclusion of article 40 of law 4488/2017 (Government Gazette 138/139)
  • not to be pending the recovery of previous illegal and incompatible state aid according to a decision of the EU
  • in case the enterprise has previously joined EAT (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.


Non Eligible Sectors/ Enterprises:

Enterprises that operate in:

  • Illegal activities in accordance with Greek and Community lawThe production of and trade in tobacco
  • The production of and trade in weapons and ammunition of any kind.
  • Researching and developing techniques related to online gambling / online casinos / or giving illegal access to electronic data networks
  • Research, development or technical applications relating to (i) Human cloning for research or therapeutic purpose; or (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.

Product Characteristics

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. It is also foreseen the possibility of financing in the form of Bond Loans.


Loan amount


Minimum:
15.000€


Maximum:
The amount of total funding should not exceed the maximum of the following amounts:

  1. Up to 25% of the turnover of the company in 2019 or
  2. Up to twice the salary cost of the company in 2019 or
  3. After sufficient justification that determines the liquidity needs of the company, the loan amount may be increased beyond the above limits 1. and 2. to meet the liquidity needs from the date of granting the loan for the next 18 months for the Small and Medium Enterprise and the self-employed and for the next 12 months for Large Corporate


Duration

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

Interest Rate

  • Euribor + spread (The interest rate of the financing loan of each company is determined by the Bank in accordance with its current policy and the general terms of the Action.)

    Interest rates are also subject to the Law 128 / 75 (where this is foreseen).


Repayment:

  • With monthly or 3 monthly or 6 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

SME
 
0,25
 
0,50
 
1,00

Large Corporate
 
0,50
 
1,00
 
2,00



Disbursement:

One-off or Partial instalments


Collaterals

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


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 funding is provided by the guarantee offered by the Guarantee Fund for COVID 19, by the Hellenic Development Bank (HDB), 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).


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