INVESTMENT LOANS WITH THE OPTION OF RECEIVING WORKING CAPITAL FOR SMEs OPERATING IN THE AGRICULTURAL AND AGRICULTURAL PROCESSING SECTOR
The Micro-Agri Loans Fund for Agricultural Entrepreneurship was established to provide co-financing loans via Financial Intermediaries, in order to obtain Small and Medium Enterprises operating in the agricultural and agricultural processing sector access to financing.
The goal of the Fund is accomplished by offering loans on favorable terms, with 50% of the capital of each loan being interest rate-free, as it is financed by the Micro-Agri Loans Fund for Agricultural Entrepreneurship, which is managed by the Hellenic Development Bank (HDB). Additionally, the Fund offers to final beneficiaries a full interest subsidy on the interest rate applied by the Financial Intermediary for the remaining 50% of the capital of each loan for the first two years, plus a grant up to €300 per Tax Identification Number (TIN), optional and upon request, for technical and advisory help (mentoring).
The ability of submitting funding applications for the Micro-Agri Loans Fund, via the KYC platform, the State Aid Information System (PSKE) and the Financial Intermediaries, has been reactivated due to a Fund budget increase of an additional amount of €40 million.
Purpose of financing
The Fund aims to provide micro loans for investment purposes, covering investments upon agricultural holdings, as well as in investments related to the processing of agricultural products with a final product that is also agricultural. Working Capital may be granted subject to and for the purposes of investment.
Which enterprises are eligible
The Fund applies to Greek small and medium-sized enterprises that own a legal establishment and operate in agricultural and agricultural processing sector.
Co-Financing Scheme
The Fund provides 50% of the capital interest rate-free, while the remaining 50% is charged by the Financial Intermediary, leveraging public resources.
The Fund’s Budget
The Fund budget has been increased by an additional amount of €40.000.000, contributing to a total budget of €61.500.000, thus shaping a total loan portfolio of €107.000.000. The initial budget of the Fund, which was exhausted within the 1st semester of its operation, amounted to €21.500.000 with the portfolio height of approved loans amounting to €35.422.000.
Financial Advantages For The SMEs
The financial advantages for the SMEs are presented as follows:
- 100% interest subsidy for the first two years of each loan, provided that, during the subsidized period, the borrower does not have any overdue debts for any reason exceeding 90 days of continuous overdue from the specific financing, according to the loan agreement. For the remaining duration of the loan, a 50% reduction in interest rate is achieved due to the interest-free contribution of the Fund’s capital to the co-financing scheme (Law 128/75 Contribution, and any overdue interest is not subsidized).
- Grant of €300 per Tax Identification Number (TIN) for receiving consulting and technical support (mentoring) through consulting firms that collaborate with the Financial Intermediaries. This provision is optional upon request of the enterprise.
Collateral
No security in rem is required from the enterprise to obtain the loan, but contractual/personal guarantees are considered.
Loan Amount Range
The loan amount may range from €3,000 up to €25,000.
Loan Duration Range
The loan duration may range from twenty-four (24) up to eighty-four (84) months, including the possibility of obtaining a grace period of up to twenty-four (24) months for the capital repayment.
Loan Disbursements
The first disbursement of the loan must be concluded within two (2) months from the signing of the loan agreement. In the case of installments, the total disbursement of the loan must be concluded within a maximum period of 12 months.
Application Process
Potential SMEs must apply via:
- A) The Know Your Customer (KYC) platform of the Hellenic Development Bank S.A., which is available on the website hdb.gr. Each submitted application goes through a series of eligibility criteria assessments and upon relevant approval, the application is forwarded to the pre-selected Financial Intermediaries for the submission of a non-binding offer. Once the application is initially accepted by a Financial Intermediary, viz it receives a non-binding offer from the interested party, a unique KYC code is issued.
B) The Information State Aid System (PSKE), which is available on the website https://www.ependyseis.gr/. At this point the unique application number from the KYC platform (KYC code) is entered and the SME declares the Financial Intermediary from which it wishes to get financed and has already received the non-binding offer.
Cooperative Financial Intermediaries:
- PANCRETA BANK
- COOPERATIVE BANK OF THESSALY
- COOPERATIVE BANK OF KARDITSA
- COOPERATIVE BANK OF EPIRUS
- PIRAEUS BANK
- EUROBANK
- COOPERATIVE BANK OF CHANIA
