TEPIX III LOANS FUND

The Fund improves the access to finance for all small and medium-sized enterprises (SMEs) and aims to support and develop their business activity, so as to cover a wide range of their financing needs. Furthermore, the programme aims to enhance the productivity of the enterprises, by improving their processes for products & services produced and, by extension, to improve their overall position in the aspect of competitiveness in international markets

The Fund applies to small and medium-sized enterprises that own a legal establishment and operate within Greece. Eligibility is defined by the programme’s NACE list, which is published on HDB site.

The budget of the TEPIX III Loans Fund amounts to € 200 million and is funded by the Competitiveness Programme 2021-2027 under the co-financing of the European Union. Alongside the participation of the Financial Intermediaries by 60% in each loan, a total loan portfolio of up to ~ € 450 million is formed. 

The Fund provides 40% of the capital interest rate-free for each loan, while the remaining 60% is charged by the Financial Intermediary bearing relevant interest rates, which will be reduced by at least 25 bps (basis points), in accordance with its lending policy. Additionally, the Fund may offer a partial interest subsidy (3%) on the interest rate imposed by the Financial Intermediary on its capital for the first two years of the loan (starting from the first disbursement). Please refer to the relevant table with the maximum interest rates offered by the Financial Intermediaries

The financial advantages for the SMEs are presented below:

1. The capital part of the loans financed by the Fund (i.e., 40% of the capital of each loan) is interest rate-free.
2. The Fund may subsidize a portion of the interest rate imposed by the Financial Intermediary upon its share of the capital (that is the remaining 60% of each loan). This subsidy applies for the first two years of the loan (starting from the first disbursement) and reduces the overall borrowing cost for the enterprise by 3% (i.e. 300 basis points), thus assisting the enterprise to save money. 
3. Each Financial Intermediary participating in the Fund is required to reduce the interest rate of each loan by at least 25 basis points (bps) per year compared to the interest rates that would be applied to equivalent financing without the participation of the Fund. 

D. The maximum amount of collateral that a Financial Intermediary may request for each financing cannot exceed 100% of the loan capital.

The loan amount may range regarding each Sub-programme and Sub-action category:

Sub-programme 1 – Investment loans

• Sub-action category 1.1 via De Minimis state aid framework: from € 20.000 up to € 1.500.000
• Sub-action category 1.2 via GBER state aid framework: from € 20.000 up to € 1.500.000

Sub-programme 2 – Special Purpose Working Capital loans

• Sub-action category 2.1 via De Minimis state aid framework: from € 10.000 up to € 500.000

The loan duration may range regarding each Sub-programme:

• Sub-programme 1 – Investment loans: from 5 to 12 years, including the possibility of obtaining a grace period regarding the capital repayment of up to 24 months.

Sub-programme 2 – Special Purpose Working capital serving specific purposes: from 2 to 5 years, including the possibility of obtaining a grace period regarding the capital repayment of up to 12 months.

The loan can be disbursed either in a lump sum or in installments, within a period of up to four (4) months from the signing of the Final Recipient Loan Agreement. The first disbursement of the loan must be concluded before the end of the Programme Eligibility Period (i.e., 31.12.2029).

More specifically, in cases of partial disbursements, the total disbursement of the loan should be concluded within a maximum duration of twenty-four (24) months from the signing of the Loan Agreement, keeping in mind that the final disbursement date -in any case- is up to 31.12.2029.

The Financial Intermediary may request contractual and/or security in rem, in accordance with its credit policy. The maximum amount of collateral that can be required though cannot exceed 100% of the loan capital. Please refer to the relevant table with the maximum collateral ratios that may be imposed by the Financial Intermediaries.

The State Aid framework that applies to the TEPIX III Loans Fund differs according to each Sub-action category:

• Sub-action categories 1.1 & 2.1: De minimis Regulation (EU) 2831/2023, as amended and in force.

Sub-action category 1.2: General Exemption Regulation GBER (EU Regulation 651/2014), as amended and in force, and in particular article 21.

In order to apply for funding, interested SMEs must engage in the below steps: 

1. Application submission to the KYC (Know Your Customer) platform of the Hellenic Development Bank (HDB) – https://kyc.hdb.gr/. Each submitted application undergoes a series of eligibility criteria assessments and, upon relevant approval, is forwarded to the Financial Intermediaries selected by the enterprise for the submission of a non-binding offer. If the application is accepted by the selected financial intermediary, the interested party receives a non-binding offer and a unique KYC code is issued, which will be used later on in the Integrated State Aid Information System (OPSKE). 
2. Application submission to the Integrated State Aid Information System (OPSKE) – https://app.opske.gr/, indicating the unique application number from the KYC platform (step A), which states the Financial Intermediary from which the SME wishes to be financed and has already received a non-binding offer.
3. Application submission and submission of all required supporting documentation to the Financial Intermediary for its evaluation. 

Furthermore, SMEs have to complete a self-assessment questionnaire regarding Environmental, Social and Corporate Governance criteria, which is available on the ESG Tracker platform by HDB – https://esgtracker.hdb.gr/. The completion of the questionnaire is necessary in order to be able to submit the application for funding. However, it is clarified that the results of the self-assessment questionnaire do not affect the enterprise’s creditworthiness, either positively or negatively.

1. AEGEAN BALTIC BANK
2. ALPHA BANK
3. ATTICA BANK
4. COOPERATIVE BANK OF CHANIA
5. COOPERATIVE BANK OF EPIRUS
6. COOPERATIVE BANK OF KARDITSA
7. COOPERATIVE BANK OF THESSALY
8. EUROBANK
9. NATIONAL BANK OF GREECE
10. OPTIMA BANK
11. PANCRETA BANK
12. PIRAEUS BANK