Very small companies with a turnover of up to €1,000,000 have the opportunity to obtain working capital loans of up to €250,000 or up to 25% of their turnover through the Covid 19 Guarantee Fund (3rd Cycle) of the Hellenic Development Bank – HDB.
Given the guarantee of the fund, the beneficiary company receives a lower interest rate on the loan and a much smaller collateral.
In particular, loans are backed by an 80% guarantee from the Hellenic Development Bank, while the maximum percentage of collateral that can be requested from banks is only 20%. These loans are issued for up to 60 months, including a grace period of up to 24 months, while the fund also can be used by startups.
Lending is in full swing, about 300 million euros are still available for issuance. To participate, interested companies must first apply on the website https://ependyseis.gr/mis and then contact the bank of their choice. dikaiologitika.gr.
Participating banks: National Bank, Piraeus Bank, Eurobank, Alfa Bank, Attika Bank, Pankrit Cooperative Bank, Karditsa Cooperative Bank, Central Macedonia Cooperative Bank and Chania Cooperative Bank.
Purpose of the program
The credit risk is partly covered by the COVID-19 Business Guarantee Fund Guarantee to provide new regular working capital loans to very small businesses. The goal is to meet increased liquidity needs resulting from the COVID 19 epidemic crisis. All loans must be repaid no later than 06/30/2022.