By Vangelis Dourakis

Cheap working capital up to 500,000 euros and financing for investments up to the amount of 8 million. thousands of small and medium enterprises will be able to claim from the beginning of the new year.

Then it is expected to be activated – as officials of the Ministry of National Economy and Finance estimate – the new cycle of loans with subsidized interest rates through TEPIX III. The amounts estimated to “move” in the market will exceed 400 million. euro.

Through this specific program it is possible to secure financing, for which the Hellenic Development Bank’s TEPIX III Loan Fund pays 40% of the capital interest-free, while the remaining 60% is granted through the Credit Institution by charging the relevant interest rates.

The interest rate subsidy and the duration of the loans

Additionally, the Fund subsidizes part of the interest rate: The subsidy concerns the first 2 years (from the 1st disbursement) and reduces the loan interest rate by 2% for businesses operating in the regions of Attica & the South Aegean and 3% for businesses that are active in the remaining regions.

The duration of the loan depends on its purpose and is structured in:

60-144 months for investments
24-60 months for special purpose working capital.

The “TEPIX III Loan Fund” is addressed to Small and Medium Enterprises, in accordance with Annex I of Regulation (EU) 651/2014, while it should be noted that the interest rate subsidy applies if the installments are paid regularly.

What is the application process?

With the activation of the new round of financing, in order to join the Fund, the candidate company will have to submit an application:

A. On the KYC (Know Your Customer) platform of the Hellenic Development Bank, through the website https://kyc.hdb.gr/.

For each completed application and after a series of evaluations of eligibility criteria, the application is forwarded to the Credit Institutions chosen by the interested party, for the submission of a non-binding offer. If the application is initially accepted, i.e. the interested party receives a non-binding offer, then a unique code is issued.

B. In the Integrated Information System of State Aids (OPSKE), through the website https://app.opske.gr/ where the unique code from the EAT KYC platform is registered for the Credit Institution.
C. To the Credit Institution from which it wishes to be financed and has already received a non-binding offer through KYC for the evaluation of the application and required supporting documents.

In addition, the company completes a Self-Assessment Questionnaire on 3 main criteria: Environmental, Social and Corporate Governance (ESG) on the ESG Tracker by HDB platform, through the website https://esgtracker.hdb.gr/.

Completing the said questionnaire is necessary in order to be able to submit the financing application to the Bank. It is clarified that the results of the self-assessment are not a criterion for the company’s eligibility for the program.