Development Law Financial Instrument Guarantee Fund (DeLFI GF)

It applies to existing and newly established Very Small, Small, and Medium-sized Enterprises (SMEs) (as defined in Annex I of Regulation (EU) No 651/2014) that have been classified under a support scheme through the new Development Law 4887/2022 and have not commenced operations before submitting their application on the KYC platform.

Given the guarantee provided by DeLFI GF, the business benefits from both:

1. Lower interest rates on the loan, and
2. Lower collateral requirements.

The initial available budget of DeLFI GF amounts to €100 million, and with the leverage created, the total portfolio will reach €500 million

Through DeLFI GF, the following types of loans will be granted:

1. Medium to long-term loans for the private equity part of the business.
2. Short-term bullet loans for the subsidized part of the Development Law 4887/2022.

It should be noted that:

• 25% of the supported investment should not receive any form of state aid, public support, or provision.
• Both types of financing can be funded with separate loan agreements, provided that as long as the total amount of Long-term + Short-term <= €10 million.

The maximum loan amount is €10,000,000 and the minimum is €50,000 as determined by the financing scheme of the application under the Development Law 4887/2022.

The loan durations are as follows:

• For medium to long-term loans, the duration can range from three (3) to ten (10) years, including any grace period.
• For short-term bullet loans, the duration can range from one (1) to five (5) years, depending on the final completion date of the investment and the disbursement of the subsidy to the business. There is also the possibility of an extension (subject to state aid limits) in case of delayed payment of the subsidy amount (lump sum or remainder) by the public sector, with the possibility of a grace period of up to 36 months.

 It is 80% per loan.

 During the loan disbursement process, DeLFI GF provides credit risk protection to Credit Institutions, covering up to 80% of each disbursed loan, in case the business is unable to repay it. This entails a reduction in risk for Credit Institutions and makes it more attractive to provide loans to businesses that may face difficulties in accessing credit capital due to the uncertainty associated with new investment efforts under the Development Law.

Therefore, the guarantee provided by DeLFI GF serves as a form of security for Credit Institutions, allowing them to take on greater risk in loan issuance.

 For the assurance of the claim from loans, it is possible for Credit Institutions to obtain additional collateral (tangible and/or intangible securities) beyond the guarantee of DeLFI GF:

• For long-term loans, the maximum amount of tangible collateral cannot exceed 40% of the loan amount, regardless of the credit rating of the business, and in any case, the permanent and sole residence of the beneficiaries of the borrowing business or the guarantors is prohibited.
• For short-term bullet loans, the exclusive collateral is the assignment of the claim from the subsidy granted by Development Law 4887/2022.

The guaranteed fee, paid by the business, falls under one of the following cases:

1st Case:

The guaranteed fee is calculated based on the premiums of the safe port specified in the European Commission Communication on guarantees (2008/C 155/02), and the net present value of the guaranteed fee is collected based on the reference rate (2008/C 14/02).

2nd Case:

The guaranteed fee is calculated according to the terms of Article 14 of the regional aid provisions of General Block Exemption Regulation (EU) 651/2014. In this case, the business pays a guaranteed fee of 0.20% of the guaranteed capital.

It should be noted that the guaranteed fee is calculated by each Credit Institution.

To participate in the Program, the prospective business submits an application:

1. A) Through the Know Your Customer (KYC) platform of the Hellenic Development Bank S.A. via the website www.hdb.gr. For each completed application and after a series of eligibility criteria assessments, the application is forwarded to the selected Credit Institutions for the submission of a non-binding offer. Once the application is initially accepted, meaning it receives a non-binding offer from the interested party, a unique code is issued.
   
2. B) Through the Information State Aid System (PSKE) via the website https://www.ependyseis.gr/, where the unique application number from the KYC platform is entered, declaring the Credit Institution from which the applicant wishes to receive financing and has already received a non-binding offer.