Innovation Guarantee Fund

Piraeus Bank, in collaboration with the Hellenic Development Bank – HDB, offers financing through investment loans and/or working capital to innovative small and medium-sized enterprises, with preferential terms and reduced collateral.
IDEAL FOR
Small and Medium-sized Businesses, which intend to implement an innovative investment plan
REPAYMENT METHOD
  • Monthly
  • 3-monthly
  • 6- monthly or
  • annual instalments repaying
  • principal  and  interest combined
    Or
    principal and interest apart
INTEREST RATE
Variable

based on Euribor
OTHER FEATURES
  • Fund Guarantee for 80% of loan amount
  • Grant up to 20% of the total disbursed loan, in cases where specific innovation (15% rebate) and ESG (5% rebate) criteria are met
  • 100% grant on Guarantee Fee
  • Preferential Pricing for eligible Businesses
IDEAL FOR
Small and Medium-sized Businesses, which intend to implement an innovative investment plan
REPAYMENT METHOD
  • Monthly
  • 3-monthly
  • 6- monthly or
  • annual instalments repaying
  • principal  and  interest combined
    Or
    principal and interest apart
INTEREST RATE
Variable

based on Euribor
OTHER FEATURES
  • Fund Guarantee for 80% of loan amount
  • Grant up to 20% of the total disbursed loan, in cases where specific innovation (15% rebate) and ESG (5% rebate) criteria are met
  • 100% grant on Guarantee Fee
  • Preferential Pricing for eligible Businesses

Eligibility criteria

The program is open to start-ups, new and existing SMEs of any legal form (Individual, OE, EU, LTD, SA, IKE, etc.) that belong to the List of eligible NACE codes, keep diplographic books at the time of application for funding (C Category books) in PSKE and which are considered creditworthy. The following criteria must be met:

  • Meet at least one (1) of the twelve (12) innovation criteria.
  • Their activity to be eligible
  • Not to be subject to collective insolvency proceedings under national law and not to have received rescue aid or restructuring aid or to have been declared under compulsory management by creditors.
  • 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
  • Have not shown adverse credit behaviour in previous programs of HDB (former ETEAN).
  • No amount of guarantee debt has been paid to them by HDB or if 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 at the date of submission of the financing application.
  • They are not purely export-oriented Businesses, however, covers costs of participation in trade fairs, studies, consulting services or consulting services necessary for the marketing of a new or existing product in a new market of another Member State or a third country are covered.

Features

Purpose

The financing of the the submitted innovation business plans of eligible innovative small and medium-sized enterprises 

Eligible, under the Fund, are the costs related to the Company's investment plan either purely investment costs or a combination of investment costs and working capital as part of the investment plan, or pure working capital provided that it is certified as an innovation cost.

Amount

From €25.000 up to €400.000

Duration of Finance

Loan duration varies from 1 up to 10 years.

Currency

Euro (€)

Repayment

For Small Businesses and Professionals (Turnover ≤ € 2.5 million):

Monthly or quarterly installments repaying principal and interest combined

For Medium Enterprises (€ 2.5 million <turnover ≤ € 50 million):

Monthly, 3-monthly, 6- monthly or annual instalments repaying principal and interest combined or principal and interest apart.

Grant Percentage (as repayment of the outstanding loan principal):

  • 15% on the disbursed amount if Innovation criteria are met and
  • 5% on the disbursed amount if ESG criteria are met

The fulfilment of these criteria must have been implemented within 12 to 36 months from the 1st disbursement of the loan.

The Grace Period
From 1 to 3 years.

Currency
Euro (€) 

Interest Rate

Variable based on Euribor 1Μ/3Μ/6M/12M

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

The final interest rate of the customer is formed by the Bank in accordance with its current credit & pricing policy.

Early repayment option

Option for early partial or full repayment without penalty.

In case of early repayment, in order to be able to receive the subsidy, the remaining loan balance  must in any case be greater than or equal to the amount of the eligible subsidy.

Loan Fees

0,5% of the initial amount of the loan with a maximum amount of €1,200.

Guarantee Fee

Guarantee fee is 100% subsidized by HDB.

Collaterals

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

Disbursement

Option of lump sum or gradual disbursements.

Gradual disbursements must be completed within the grace period and in any case before 31/12/2025.


The Program will be available up to December 31, 2025 unless its budget runs out earlier.

How to get it

You may submit your Application online at www.ependyseis.gr/mis
Once the online application is submitted you may visit any Piraeus Bank branch or you can call at 210 3288000.