The start of its operation new Entrepreneurship Fund, TEPIX III, announced today the Deputy Minister of National Economy and Finance, Nikos Papathanasis, at a press conference at the offices of the Hellenic Development Bank (EDB), flanked by the President of ED, Giorgos Zavvos and the Managing Director, Ismini Papakyrillou. It was preceded by the signing of the 12 Operating Agreements between E.A.T. and the cooperating commercial banks.

As announced, within the framework of TEPIX III, with a budget of 500 million Euros, it is expected that loans amounting to 2.2 billion Euros will be made available to small and medium enterprises – with leverage through the banking system – on particularly favorable terms, expanding the circle of financed SMEs and their lending perimeter. It is the first time that the combination of the loan guarantee with the interest rate subsidy is provided.

Specifically:

  • The TEPIX III Guarantee Fund, financed by the NSRF 2021-2027, consists of two separate Funds: the Guarantee Fund and the Loan Fund.
  • The Guarantee Fund provides credit risk protection in the form of a guarantee for all eligible businesses. It offers a guarantee of 70% to 80% in investment loans (from 10,000 euros to 10 million euros), in working capital loans and revolving credit loans (from 10,000 euros to 500,000 euros). It also offers an interest rate subsidy of two percentage points for two years, to businesses in Attica and the South Aegean, and three percentage points to businesses in the remaining Regions of the country. No real collateral will be required for loans up to 50,000 euros.
  • The Loan Fund offers loans, with 40% of the amount interest-free, and a 3% interest subsidy on the remaining part (60%) for 2 years. In total, the loans provided through the TEPIX III Loan Fund have a reduced interest rate of up to 70% for the first 2 years. The duration of investment loans is 2 to 12 years, with a grace period of up to 24 months. And for working capital from 2 to 5 years, with a grace period of up to 12 months, during which the company does not repay capital but only interest.

At the press conference that followed the signing of the Operating Agreements with the 12 banks, the Deputy Minister of National Economy and Finance, Nikos Papathanasis, underlined that the launch of the new Entrepreneurship Fund is yet another practical proof of the strategic importance that the Government attaches to the support entrepreneurship, especially small and medium enterprises. “The goal is to cover the investment gap created by the economic crisis, improve competitiveness and create new and better-paid jobs for all our fellow citizens.

In this direction, with a commitment to the plan to strengthen entrepreneurship, realism and development, through the European resources that Kyriakos Mitsotakis secured through his negotiation, we contribute with financial tools to the expansion of the perimeter of access to the banking sector of small and medium enterprises, with low-interest loans and securing the required guarantee. It is indicative that in the context of TEPIX III, the reduction in the financing costs of SMEs can reach up to 70% in the case of the Loan Fund, while through the Guarantee Fund not only the final interest rate but also the collateral requirements are significantly reduced, without any additional cost.

With determination and method, we implement everything we committed to, so that Greece remains at the forefront of development and the absorption of European funds in the Europe of 27″, he added.

The President of the Hellenic Development Bank, Giorgos Zavvos, emphasized the strategic role of ETA and underlined the bank’s commitment to fill the investment gap of the market through the utilization of national and European resources, and the creation of targeted financing tools in cooperation with commercial banks. He also highlighted the EBA’s achievements in integrating thousands of SMEs into the financial system, granting new loans and contributing to the creation of new jobs. “The Hellenic Development Bank is the only development bank in Greece, focused on providing affordable financing to SMEs, supporting sustainable development and promoting innovation to enhance competitiveness and economic growth. Our core principles of resilience, sustainability and inclusiveness ensure that meaningful and equitable development is promoted. The EBA will continue to support efforts to address climate change and protect biodiversity, with the aim of creating a sustainable and resilient economic and social model,” he noted.

For her part, the Managing Director of the Hellenic Development Bank, Ismini Papakyrillou, presented in detail the new financing tools included in TEPIX III, pointing out that they cover all the financing needs of a business and offer special incentives for start-ups as well as for companies participating in Hellenic Development Bank programs for the first time. “The TEPIX III program builds on the success of the previous TEPIX I & II programs, offering a comprehensive financing proposal for SMEs, whether they need working capital or are looking for financial support for their investment plans. They ensure extremely favorable financing conditions, with significant interest rate subsidies, high co-financing or guarantee rates, long grace periods and loan durations. The Hellenic Development Bank remains firmly committed to the goal of expanding the circle of financed small and medium-sized enterprises and improving their competitiveness”, he emphasized.

The Banks participating in the program are the following:

  • ALPHA BANK
  • EUROBANK
  • PIRAEUS BANK
  • National Bank
  • PAGRITIA BANK
  • ATTICA BANK
  • OPTIMA BANK
  • COOPERATIVE BANK OF THESSALIA
  • KARDITSAS COOPERATIVE BANK
  • COOPERATIVE BANK OF CHANIA
  • EPIRO COOPERATIVE BANK
  • AEGEAN BALTIC BANK (only for the Loan Fund)