HDB Loans Entrepreneurship Fund III

Piraeus Bank, in collaboration with EAT-HDB participates in the "Entrepreneurship Fund III" and offers you financing solutions that combine interest-free financing for 40% of the loan as well as a two-year interest rate subsidy of up to 3%* with the aim of strengthening and the well-being of existing and newly established SMEs.

Funding is provided in the form of:

  • Investment Loans
  • Special Purpose Working Capital Loans

* The two-year subsidy of up to 3% is provided by the Fund for 60% of the loan, financed by the Bank's funds, for companies implementing an investment plan, or - in the case of a special purpose working capital loan - for companies participating for the first time in an HDB program and on the condition that they will be bank aware or have a delay of less than or equal to 90 days (≤ 90 dpd) on the specific loan.
IDEAL FOR

Very Small, Small and Medium Enterprises that intend to implement a business plan, which submission is obligatory, and seek preferential financing against documents, in this context.

REPAYMENT METHOD

  • Monthly
  • Quarterlyly
  • Semi-annual,
  • Annual installments repaying capital and interest combined

or

capital and interest apart Balloon payments**

**Only for Working Capital to Medium Enterprises and on the condition that the remaining capital due will not be grater than 70% of the disbursed loan at the last 25% of the total term of the loan

INTEREST RATE
Fixed
for the entire loan duration
or
Variable
Based on Euribor 3m
OTHER FEATURES

Preferential pricing from:

  • Interest-free co-financing by 40% from HDB
  • Up to 3% subsidy* of the interest for the first 2 years on the rest 60% of the loan amount
IDEAL FOR

Very Small, Small and Medium Enterprises that intend to implement a business plan, which submission is obligatory, and seek preferential financing against documents, in this context.

REPAYMENT METHOD

  • Monthly
  • Quarterlyly
  • Semi-annual,
  • Annual installments repaying capital and interest combined

or

capital and interest apart Balloon payments**

**Only for Working Capital to Medium Enterprises and on the condition that the remaining capital due will not be grater than 70% of the disbursed loan at the last 25% of the total term of the loan

INTEREST RATE
Fixed
for the entire loan duration
or
Variable
Based on Euribor 3m
OTHER FEATURES

Preferential pricing from:

  • Interest-free co-financing by 40% from HDB
  • Up to 3% subsidy* of the interest for the first 2 years on the rest 60% of the loan amount

Eligibility criteria

The program is open to Small and Medium Enterprises (definition of SMEs (Annex I of EP 651/2014) , which operate legally in Greece, except for off-shore, holding groups participating in other companies, companies in the financial sector, public bodies and their subsidiaries, local government organizations and their subsidiaries, with:

  • Eligible NACE CODE
  • Maintain an establishment and operate in Greece legally and have been established up to the time of submitting the financing application to the Bank.
  • They are not considered as Problematic Enterprises (as defined in point 18 of article 2 of Regulation 651/2014), when submitting the application for funding to the State Aid Information System.
  • They are considered creditworthy in accordance with the current credit policy and internal procedures of the Bank.
  • Not have been subject to collective insolvency proceedings and do not meet the conditions under the domestic legislation to which they are subject to be subject to collective insolvency proceedings at the request of their creditors.
  • They are bank aware (they owe <90 days) at the time of submitting a request for financing to the Credit Institution.
  • They are companies for which there are no grounds for exclusion of article 40 of law 4488/17 (A 137/139/17),
  • There is no pending recovery order of previous illegal and incompatible state aid based on an EU or WEU decision
  • They have not received another loan in the context of the present action of TADYM In case the enterprise has previously joined HDB (formerly ETEAN) programs that have expired or are in force, it should not demonstrate adverse transactional behavior in debt repayment, such as a loan contract termination 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
  • They have not been excluded by an exclusion decision from the EIB both at the time of submitting a financing request to the EXO and at the time of concluding the Final Recipient Agreement in accordance with the EIB's Exclusion Policy (https://www.eib.org/en/about/accountability/anti-fraud/exclusion/index).
  • They have been registered in the Register of Beneficial Beneficiaries of article 20 of Law 4557/2018 (Α΄ 139), as applicable, before the date of submission of the financing application, except in the cases of beneficiaries who are expressly exempted from the relevant obligation and provide relevant documentation.
  • They have completed the self-assessment process for the ESG Criteria in the ETA's ESG Tracker, and have submitted the ESG Tracker Performance Report in PDF format to Piraeus Bank when submitting the financing application, where the company's performance against these criteria is reflected.

Features

Purpose

The financing of SMEs to support and expand their operations, according to the Business Plan submitted each time. The Fund will support the development of business activity and the strengthening of employment in the country, through:

  • Special Purpose Working Capital Loans
  • Investment Loans

(i) the refinancing/repayment of existing borrowing, (ii) the financing of a dividend payment plan or the purchase of shares (iii) the financing of Acquisitions and Mergers and (iv)the purchase of land for an amount exceeding 10% of the Fund's contribution to the respective loan.

Amount

Working Capital: From €10,000 up to of €500,000 per company

Investment Loans according to the Aid Regulation:

  • From €20,000 up to €1,500,000 per company under De minimis
  • From €20,000 up to €8,000,000 per company under General Block Exemption Regulation (GBER)

Duration

  • Working Capital: From 2 up to 10 years (including grace period)
  • Investment Loans: From 5 up to 12 years (including grace period)

Interest Rate

Fixed for the entire loan duration or Variable based on Euribor 3m plus margin reduced by 40%

The interest rates are charged with the interest margin and the contribution of L.128 / 75 for the part of the bank’s funds (60%), which currently amounts to 0.60% .
The customer's final interest rate is determined on the basis of an assessment of its Creditworthiness.

Interest rate subsidy

Two-year interest rate subsidy of 3% which:

  • Is definitively terminated in the event of an overdue payment of more than 90 days
  • Does not cover the levy of Law 128/75 and any late payment interest that, in any case, is borne by the customer.

Repayment

  • For Small Businesses and Professionals (Turnover ≤ €2.5 million):
    Monthly or quarterly installments combining principal and interest
  • For Medium Enterprises (€2.5 million Monthly quarterly, semi - annual, annual installments of principal and interest combined or principal and interest apart
    Balloon payments are offered for Working Capital cases, on the condition that the remaining capital due will not be grater than 70% of the disbursed loan at the last 25% of the total loan term.

Early repayment

Early partial or full repayment is possible without any charge. The capital repaid can not be refinanced.

Currency

Ευρώ (€)

Disbursement:

Disbursements can be either one-off or partial.

The first disbursement (one-time total or first installment) of the amount of the Contract should be made within four (4) months from the signing of the Contract. In case of partial disbursements:

  • the 1st disbursement will obligatorily take place within four (4) months from the date of signing the Contract, and
  • the final date of completion of the disbursements is set within 24 months from the 1st disbursement and in any case until 31.12.2029 (disbursements final date), whichever date from the above comes first.

    Co-financing from HDB

    The loans are co-financed by 40% from interest – free capital from HDB

    Collaterals

    Up to 100% of the loan amount.

    Availability Period

    The availability period expires on 31.12.2029

How to get it

Application on the "Know Your Customer (KYC)" HDB platform

  1. Selection of Bank by the applicant
  2. After applying automatic evaluations of some of the eligibility criteria, the Bank expresses its interest in principle in receiving & the application. (Status "Interested").
  3. The potential borrower receives a unique code per bank which he/she will enter during his application in the app.opske.gr

AApplication in app.opske.gr

  1. Enter app.opske.gr with your personal codes (in case of non-existing codes you must register)
  2. Fill in the details of the business to be financed in the application adding the unique code generated by the "Know Your Customer (KYC)" HDB platform
  3. Select Piraeus Bank to submit your request
  4. Finalize and submit your application to the system

Self-assessment on the ESG Tracker platform of the EBA

Enter the ESG Tracker digital platform where you must complete the self-assessment process for the ESG criteria and submit the generated ESG Tracker Performance Report (in PDF format) to the Bank when applying for funding. (The results of the self-assessment through the ESG Tracker are not eligibility criteria of the company concerned).

Application for financing in a branch of Piraeus Bank

Once the application process has been completed at app.opske.gr, you may visit a Piraeus Bank branch, carrying the printed application form.

For more information: