Subsidized & Professional Loans

Small and medium-sized enterprises, which aim to improve their productivity and develop their profitability, can utilize the following programs for the implementation of their investment plans:

ΤΕΠΙΧ ΙΙΙ Loan Fund – Interest-Free Financing for 40% of the Loan
The ΤΕΠΙΧ ΙΙΙ Loan Fund was created within the framework of the Entrepreneurship Fund III, to provide Small and Medium Enterprises with investment loans and special-purpose working capital on particularly favorable terms.

ΤΕΠΙΧ ΙΙΙ Guarantee Fund – Combination of interest rate subsidy & guarantee!
The ΤΕΠΙΧ ΙΙΙ, Guarantee Fund, with a total initial budget of €300 million, was created to provide guaranteed investment loans, special purpose working capital loans and special purpose revolving credit working capital loans to SMEs.

MORE DETAILS

ΤΕΠΙΧ III • New cycle
The ΤΕΠΙΧ III Loan Fund continues with a new application cycle
ΤΕΠΙΧ III: 40% interest-free participation + interest rate subsidy up to 3% (2 years). Lower borrowing cost for investments up to 8M€.

What it offers in summary

VERY IMPORTANT before making any application
The program is open, but this does not mean that every business is automatically ready for bank approval. For a submission to be valid, the beneficiary must meet certain basic conditions in practice.

1. Be able to issue tax and insurance certificates.
2. Not show evidence of insolvency to TIRESIAS S.A..
3. Have a credit profile commensurate with the amount requested.
4. The investment or use of working capital must justify the amount requested and be correctly reflected in the business plan.

The Fund pays 40% of the capital interest-free for each loan, while the remaining 60% is granted through the Credit Institution by charging the relevant interest rates according to its credit policy reduced by at least 25 bps (basis points). Additionally, the Fund may subsidize part of the interest rate applied by the Credit Institution to its capital (3%) for the first 2 years of the loan (from the 1st disbursement).

See the relevant table with the maximum interest rates offered by each Bank and the guarantees.

A.The financed enterprise is fully exempt from interest for the part of the loan co-financed by the Fund (i.e. 40% of each loan), given that this amount is provided by the Fund interest-free.
B. The Fund may subsidize part of the interest rate applied by the Credit Institution to its capital (i.e. 60% of each loan). The subsidy concerns the first 2 years of the loan (from the 1st disbursement) and reduces the interest rate of the Credit Institution by 3%, which accordingly reduces the final interest rate of the loan.
C. Each Credit Institution participating in the Fund is obliged to reduce the interest rate of each loan by at least 25 basis points (bps) per year compared to the interest rates that would apply to a corresponding financing without the participation of the Fund.
D. The maximum amount of collateral that the Credit Institution may request in each financing may not exceed 100% of the loan principal.

What is the loan duration

• Sub-program 1 for Investment Loans: From 5 to 12 years,including any grace period of up to 24 months.
• Sub-program 2 for Special Purpose Working Capital Loans: From 2 to 5 years, including any grace period of up to 12 months.
• The Loan amount is disbursed either in a lump sum or in installments, within a period of four (4) months from the signing of the Final Recipient Loan Agreement and in any case before the end of the Eligibility Period, i.e. 31.12.2029.
• Specifically, in the case of partial disbursements, the total disbursement of the loan must be completed within a maximum period of twenty-four (24) months from the signing of the Loan Agreement, with a final disbursement date in each case on 31.12.2029.