Guarantee Fund TEPIX III

• 100% subsidy of the guarantee fee for the entire duration of each loan agreement.

• Subsidy of a portion of the loan interest rate (under conditions). This significantly reduces the overall borrowing cost for the business.

• Reduced interest rate on each loan compared to the market’s weighted average interest rate.

• The maximum amount of collateral that the credit institution can request for each financing cannot exceed 30% of the loan principal.

• For financings up to €50,000, the credit institution may only request personal guarantees.

Financing under the Fund must cover expenses included in the business’s Business Plan, the submission of which is mandatory. Expenses must be documented with supporting evidence to ensure their correlation with the submitted business plan and must in no case have been incurred before the date of the financing application submission to OPSKE. Specifically:

• Expenses paid with the Investment Loan that relate to the implementation of the business’s investments and have not been issued before the financing application submission to OPSKE.

• Expenses paid with the Special Purpose Working Capital/Revolving Credit Loan, as part of the business’s activities, such as expenses related to the development or expansion of the business’s activities, which have not been issued before the financing application submission to OPSKE.

• It is noted that VAT is considered an eligible expense.

• It is emphasized that for financing investments (investment and working capital/revolving credit loans) made in eligible businesses: these are based on a viable Business Plan, which contains details regarding the product/service, sales (turnover), profitability development, and determines the prior financial viability.

Financing is prohibited for expenses related to:
• Payment of debt interest (this does not apply to the interest subsidies provided by the Fund that cover part of the loan interest under the Fund), and
• Purchase of land exceeding 10% of the underlying loan amount.
• Fees, taxes (except VAT), and contributions.

These are businesses that cumulatively meet the following conditions (Eligibility Criteria) at the date of approval/inclusion in the Loan Portfolio and signing of the loan agreement:

• They are Very Small, Small, and Medium-sized enterprises according to the SME definition stated in Annex I of EU Regulation 651/2014, as amended from time to time.

• They operate legally in Greece (holding the necessary operating license, if required).

• They are active in any eligible NACE code.

• They meet the eligibility criteria and aid intensity limits according to the applicable State Aid Regulation.

• They are deemed creditworthy according to the applicable credit policy.

• They have not received rescue or restructuring aid, or the business has received rescue aid but has repaid the loan and terminated the guarantee agreement, or the business has received restructuring aid which has been completed.

• They are not considered problematic (within the meaning of Article 1, paragraph 4, and point 18 of Article 2 of Regulation 651/2014, as amended), at the time of granting the aid (at the single enterprise level).

• • They are bank-compliant (i.e., with arrears less than or equal to 90 days as of the application date).

• They do not fall under the exclusion criteria of Article 40 of Law 4488/17 (Government Gazette 137/A/2017), as in force.

• They are tax and social security compliant both at the time of submitting the expression of interest application through HDB’s KYC process and at the time of loan disbursement. Additionally, they do not show signs of insolvency according to the records kept by TEIRESIAS S.A., both at the time of submitting the expression of interest application through HDB’s KYC process and at the time of loan disbursement.

• There is no outstanding recovery order against them for any previous illegal or incompatible state aid based on a decision of the EU or CJEU.

• If they have participated in HDB programs (formerly ETEAN) that have ended or are currently active, they have not shown adverse transactional behavior in repaying their obligations (such as loan default or overdue debts for a period equal to or exceeding 90 days), or if they have shown adverse transactional behavior (loan default), they have fully settled their debts before submitting the financing application; or, in the case of a guarantee program, no guarantee debt amount has been paid by HDB; or if the said debt has been certified by the competent tax authority, it has been included in a payment plan that remains in effect at the time of submitting the financing application.

• They have registered in the Register of Beneficial Owners according to Article 20 of Law 4557/2018 (Government Gazette A’ 139), as applicable, before the date of submitting the financing application, except in cases of beneficiaries explicitly exempted from this obligation who provide relevant documentation.

• They have completed the self-assessment process for ESG Criteria in HDB’s ESG Tracker and have submitted the ESG Tracker Performance in PDF format to the Bank at the time of submitting the financing application, reflecting the company’s performance on these criteria.

For Action 1.2 (GAK): They are Small and Medium-sized Enterprises, according to the definition in Annex I of EU Regulation 651/2014, as amended, and at the time of inclusion meet at least one of the following three conditions:
a) They do not operate in any market,
b) They operate in any market for any of the following reasons: i) less than 10 years since their registration, or ii) less than 7 years since their first commercial sale,
c) They require an initial investment which, based on a business plan prepared for a new economic activity, exceeds 50% of their average annual turnover over the previous five years.

Charged to the borrower and include:

• Evaluation fees according to the current service price list of our Bank.

• Registration fees for mortgage pre-notation (lawyer fees, land registry/cadastre, etc.).

• Engineer’s fees for carrying out partial certifications / valuation of collateral.

• Annual insurance costs for fire and earthquake insurance policy of the mortgaged property, if the loan is secured by a mortgage pre-notation on real estate.