Entrepreneurship Fund – TEPIX III Loan Fund

We would like to inform you that, following an increase in the available budget, the TEPIX III Loan Fund is being reactivated, with funding applications once again accepted through the Know Your Customer by HDB (KYC) and the Integrated State Aid Information System of the Ministry of National Economy and Finance (OPSKE) platforms, as of Monday, 10.02.2025, at 12:00 p.m.

TEPIX III Loan Fund

The TEPIX III Loan Fund is a financial instrument of the Portfolio Fund named “Entrepreneurship Fund III”, whose resources are co-financed and come from the “Competitiveness” Programme under the NSRF 2021–2027. Its funding consists of European Union resources, specifically from the European Regional Development Fund, as well as national resources.

The establishment of the new Portfolio Fund represents an important step towards strengthening and promoting the growth of existing and newly established small and medium-sized enterprises (SMEs). The Hellenic Development Bank (HDB) has been appointed as the Fund Manager.

The TEPIX III Loan Fund was established under the Entrepreneurship Fund III to provide SMEs with investment loans and special-purpose working capital loans on particularly favourable terms.

What is the objective of the Fund?

The objective of the Fund is to improve access to financing for all small and medium-sized enterprises (SMEs), supporting the development and growth of their business activities and covering a wide range of their financing needs. Furthermore, the programme aims to strengthen businesses’ production operations, improve their processes and the products and services they offer, and consequently enhance their competitiveness and position in international markets.

Who is eligible?

The Fund is addressed to eligible SMEs, based on the list of Activity Codes (KAD) published on the HDB website, which are established and legally operating in Greece.

What is the budget?

The Fund’s budget has been increased to €300,000,000 following an additional allocation of €100,000,000 and is financed by the Competitiveness Programme 2021–2027, with co-financing from the European Union. Including the 60% contribution of Credit Institutions to each loan, the total loan portfolio amounts to approximately €700,000,000.

What is the financing structure of each loan?

The Fund provides 40% of the capital of each loan interest-free, while the remaining 60% is provided by the Credit Institution, with the applicable interest rates charged in accordance with its lending policy, reduced by at least 25 basis points (bps). In addition, the Fund may subsidise part of the interest rate applied by the Credit Institution to its own funds (3%) for the first two years of the loan (starting from the first disbursement). See the relevant table showing the maximum interest rates offered by each Bank.

What is the financial benefit for the business?

A. The financed business is fully exempt from paying interest on the portion of the loan co-financed by the Fund (i.e. 40% of each loan), as this amount is provided by the Fund interest-free.

B. The Fund may subsidise part of the interest rate applied by the Credit Institution to its own funds (i.e. 60% of each loan). The subsidy applies for the first two years of the loan (starting from the first disbursement) and reduces the Credit Institution’s interest rate by 3%, thereby reducing the loan’s final interest rate accordingly.

C. Each Credit Institution 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 rates that would apply to equivalent financing without the Fund’s participation.

D. The maximum amount of collateral that the Credit Institution may request for each financing arrangement must not exceed 100% of the loan principal.

What is the maximum loan amount?

The loan amount may range as follows:

Sub-Programme 1 for Investment Loans:

Action 1.1: Loans under the De Minimis Regulation (EU Regulation 2831/2023) from €20,000 to €1,500,000
Action 1.2: Loans under the General Block Exemption Regulation (GBER, Article 21) from €20,000 to €8,000,000

Sub-Programme 2 for Special-Purpose Working Capital Loans:

Action 2.1: Loans under the De Minimis Regulation (EU Regulation 2831/2023) from €10,000 to €500,000

What is the loan term?

Sub-Programme 1 for Investment Loans: From 5 to 12 years, including a possible grace period of up to 24 months.
Sub-Programme 2 for Special-Purpose Working Capital Loans: From 2 to 5 years, including a possible grace period of up to 12 months.

How are loan disbursements made?

The loan amount is disbursed either as a lump sum or in instalments within four (4) months of the signing of the Final Recipient Loan Agreement and, in all cases, before the end of the Eligibility Period, i.e. 31.12.2029.

In particular, in the case of disbursements made in instalments, the full disbursement of the loan must be completed within a maximum period of twenty-four (24) months from the signing of the Loan Agreement, with the final disbursement date in all cases being 31.12.2029.

What collateral is required?

The Credit Institution is entitled to obtain personal and/or real collateral, in accordance with its credit policy. The maximum amount of real collateral that may be required cannot exceed 100% of the loan principal. See the relevant table showing the maximum collateral percentages per Bank.

Under which state aid framework is the Fund implemented?

The applicable state aid schemes are as follows:

Action 1.2: General Block Exemption Regulation (EU Regulation 651/2014), as amended and in force, and in particular Article 21

Actions 1.1 & 2.1: De Minimis Regulation (EU) 2831/2023, as amended and in force, on de minimis aid.

How does the business submit its financing application?

To join the Fund, the applicant business submits an application:

A. On the Hellenic Development Bank’s Know Your Customer (KYC) platform, via the website https://kyc.hdb.gr/. For each completed application, and following a series of eligibility criteria assessments, the application is forwarded to the Credit Institutions selected by the applicant for the submission of a non-binding offer. If the application is initially accepted, meaning that the applicant receives a non-binding offer, a unique code is then issued.

B. In the Integrated State Aid Information System (OPSKE), via the website https://app.opske.gr/, where the unique code issued by the HDB’s KYC platform for the Credit Institution is entered.

C. At the Credit Institution from which the business wishes to obtain financing and from which it has already received a non-binding offer through KYC, for the assessment of the application and the required supporting documents.

In addition, the business completes a Self-Assessment Questionnaire covering 3 key criteria: Environmental, Social and Corporate Governance (ESG), on the ESG Tracker by HDB platform, via the website https://esgtracker.hdb.gr/. Completing this questionnaire is necessary in order to be able to submit the financing application to the Bank. It is clarified that the self-assessment results do not constitute an eligibility criterion for the business under the programme.

Which Banks are participating?