Innovation Guarantee Fund

• Small and medium-sized enterprises (SMEs) with headquarters and investment location within Greek territory

• Do not engage in Non-Eligible Activities

• Demonstrate an innovative character (meet the participation requirements – innovation evaluation criteria) by proving at least one of the following, with the relevant documentation included in the loan application indicating the criterion that qualifies them for eligibility:

  1. A business registered in the Elevate Greece registry as of the loan application submission date to the financial institution.
  2. A business that has previously received support from research, innovation, and technological development programs, as well as programs under the unified state aid action for research projects, such as “Research – Create – Innovate” or “Collaborative Innovation Clusters.”
  3. A business that demonstrates, through the submission of a business plan, that it will develop in the foreseeable future new or significantly improved products, services, or processes that involve a risk of technological or industrial failure.
  4. Proof, through submitted financial data, that the business has been active in a market for less than 12 years (prior to the loan application date to the financial institution), since its first commercial sale, with an average annual organic growth in employees or turnover exceeding 20% per year over a period of three years.
  5. Proof that the business’s expenses on research and innovation represent at least 5% of its total operating expenses in at least one of the three previous years (before the loan application date to the financial institution).
  6. Confirmation, through the submission of a business plan, that the business commits to spending at least 80% of the loan amount it will receive on research and innovation activities.
  7. Proof that the business has officially received grants, loans, or guarantees from related European research and innovation programs, or through other instruments of these programs, or through regional or national research and innovation support programs during the last thirty-six (36) months (prior to the loan application date to the financial institution).
  8. Proof that the business has been awarded a research and innovation prize within the last twenty-four (24) months (prior to the loan application date to the financial institution) by an EU institutional body or an EU agency.
  9. Proof that the business has registered at least one intellectual property right (such as patents, design rights, software copyrights, etc.) within the last twenty-four (24) months (prior to the loan application date to the financial institution).
  10. Proof that the business has received an investment within the last twenty-four (24) months (prior to the loan application date to the financial institution) from a venture capital investor or a business angel.
  11. Proof that within the last 3 years (prior to the loan application date to the financial institution), the business has incurred research and innovation expenses funded by national or regional bodies or organizations, aimed at encouraging other companies to invest in research and innovation, under the following conditions:

  aThe bodies are not connected to the Bank or the client.

  b The funding covers expenses based on a business plan.

  c The expenses have not been funded by the aforementioned bodies.

  12. Proof that the business has been designated as an “Innovative Enterprise” within the last thirty-six (36) months by the EU or by national or regional bodies, provided that:

  • The designation is based on published criteria
  • The body is not connected to the Bank or the client
  • The funding covers expenses based on a business plan

• The business maintains double-entry accounting books at the time of submitting the financing application to the bank,

• The business is not undergoing collective insolvency proceedings under national law, has not received rescue aid or restructuring aid, and has not been declared under compulsory management by creditors,

• The business has been legally established up to the time of submitting the financing request through the State Aid Information System.

• Are deemed creditworthy according to the applicable credit policy and internal procedures of the financial institution

• Are bank-compliant (with debts less than 90 days overdue) at the time of submitting the financing request to the financial institution and according to each institution’s policy

• Are businesses for which no exclusion grounds exist under Article 40 of Law 4488/17 (Official Gazette A 137/139/17), as applicable

• Are deemed creditworthy according to the applicable credit policy and internal procedures of the financial institutions, taking the guarantee into account

• Do not have exclusion grounds under Article 40 of Law 4488/2017 (Official Gazette A 138/139), as applicable

• Are businesses for which there is no pending order for the recovery of previous unlawful and incompatible state aid based on EU or CJEU decisions

• If they are businesses that have participated in programs of the Hellenic Development Bank (formerly ETAN) that have expired or are still active, they have not shown adverse credit behavior in repaying their debts, such as loan defaults or related overdue debts exceeding ninety (90) days.

• If they have participated in programs of the Hellenic Development Bank (formerly ETAN) that have expired or are still active, they have not shown adverse credit behavior in repaying their debts (loan default or overdue debts for more than 90 days), or if they have shown adverse credit behavior (loan default), they have fully repaid their debts before submitting the financing application, or if it concerns a guarantee program, the guarantee amount has not been paid by the Hellenic Development Bank before the financing application submission, or if the debt has been certified by the competent tax office, it has been included in a repayment plan which remains in effect at the time of submitting the financing application.

• They are not active in the sectors of fishing and aquaculture, which fall under Council Regulation (EC) No. 104/2000.

• They are not active in the primary production of agricultural products.

• They are not active in the processing and marketing of agricultural products in the following cases:
  i. Where the amount of aid is determined based on the price or quantity of such products sold by primary producers or placed on the market by the respective businesses,
  ii. Where the aid is subject to the obligation to be partially or fully passed on to primary producers.

• They do not have activities related to exports to third countries or to member states, especially aid directly linked to exported quantities, the establishment and operation of distribution networks, or other current expenses related to export activities.

• They do not have activities where the use of domestic goods instead of imported ones is a requirement.

• Businesses are required to maintain a separate accounting ledger for transactions related to the specific financing program.

• Production and trade of weapons

• Manufacture, processing, and trade of tobacco and tobacco products

• Genetically modified foods

• Illegal activities under national law

• Decommissioning or construction of nuclear power plants

• Sectors of fishing and aquaculture falling under Council Regulation (EC) No. 104/2000

• Primary production of agricultural products

• The processing and marketing of agricultural products in the following cases:
  i. Where the amount of aid is determined based on the price or quantity of such products sold by primary producers or placed on the market by the respective businesses,
  ii. Where the aid is subject to the obligation to be partially or fully passed on to primary producers.

• Exports to third countries or to member states, especially aid directly linked to exported quantities, the establishment and operation of distribution networks, or other current expenses related to export activities.

• Businesses operating under activity conditions requiring the use of domestic goods instead of imported ones.

In addition to the guarantee from the Innovation Guarantee Fund, additional collateral may be required to secure the loan.

Specifically:

• For loans up to €50,000, the Bank may accept only personal guarantees in addition to the Fund’s Guarantee.

• For loans over €50,000, the Bank may also require real collateral (such as a pre-notation or pledge of deposit), to the extent justified given the Guarantee, up to 20% of the loan amount.
  The registration of any real security on the permanent and sole residence of the Final Recipient is not permitted.

Approved beneficiaries have the option to receive a grant amounting to up to 20% (15% plus an additional 5%) of the total disbursed loan amount. The purpose of the grant is exclusively to reduce the loan principal. In the event the grant is received, the guarantee remains in effect and applies solely to the outstanding loan principal.

Criteria for Receiving the Grant:

To receive 15% of the total disbursed loan amount as a grant, at least one of the following two innovation criteria must be met:

• Research and innovation expenses must represent at least 20% of the total operating expenses within thirty-six (36) months from the first loan disbursement.

• For startups operating for up to three (3) years at the time of signing the loan agreement with the Bank, the total expenses in research and innovation incurred within thirty-six (36) months from the first disbursement must be equal to or exceed 20% of the financed amount, according to the most recent certified financial statements. Compliance will be evidenced by supporting documentation (e.g., invoices, tax form E3, income statement, and certification by the company’s accountant or certified auditor).

If the client meets the above criteria for receiving the 15% grant, they may also receive an additional 5% of the total disbursed loan amount as a grant (reaching a total of 20%), provided they simultaneously fulfill at least three criteria across at least two of the three ESG (Environmental / Social / Governance) practice categories.