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EaSI-Guarantee Facility

 

 

The supported financing benefits from the support of the European Union under the Guarantee Facility established under Regulation (EU) No 1296/2013 of the European Parliament and the Council establishing a Union Programme for Employment and Social Innovation (“EASI”) and the European Fund for Strategic Investment (“EFSI”) set up under the Investment Plan for Europe. The purpose of EFSI is to help support financing and implementing productive investments in the European Union and to ensure increased access to financing

EaSI Guarantee Facility in the context of the EU Program for Employment and Social Innovation (EaSI) and the European Fund for Strategic Investments (EFSI)

National Bank of Greece recognizing the dynamic and growth potential of SMEs and with a view to enhancing employment and fostering the healthy development of micro-enterprises, particularly in the current economic climate, entered into an agreement with the European Investment Fund (the "EIF") to channel €40,000,000 to micro businesses in implementation of the EU's EaSI Program.

The EIF under the auspices of the EU will provide NBG with guarantee instruments, enabling microfinancing for micro-enterprises that otherwise would not be able to receive financing, or granting financing at reduced interest rates backed by the guarantees provided.

In particular, the EaSI Program seeks to provide microfinancing to businesses for amounts up to €25,000 backed by EIF guarantees so as to enable such businesses to cover working capital needs via revolving credit line and/or one-off financing, as well as financing for the acquisition of fixed assets. In addition, the initiative includes customized training programs, and advisory and mentoring services for the program's beneficiaries.

EaSI is part of EU initiatives aiming at enhancing the key objectives and targets of the "Europe 2020" strategy for promoting sustainable employment and combating social exclusion.

Aim of EaSI Program and benefits for financed businesses

The EaSI Program is a financial tool for the provision of guarantees for microfinance up to €25,000 so as to enhance access to bank financing for:

(a) micro-enterprises and professionals (with maximum €2 million turnover and employing fewer than
     10 people);

(b) start-ups in the launch, maturity and growth phases, ; and

(c) professionals, self-employed or micro-enterprises that experience difficulties accessing credit.

Features of the financing program

The key features of loans granted through the program are the following:

Loan purpose: → Working capital

                            → Investments in tangible or intangible fixed assets and equipment

Maximum loan amount: €25,000

(a) EaSI - Overdraft Facility (EaSI - Open Business Plan) renewed annually, for a maximum of 5 years, the only obligation being to pay the relevant interest on a monthly basis, with the minimum monthly payment being €50. It can also be granted as Revolving Working Capital (Credit Line) renewed annually and with interest posted on 30/6 and 31/12 each year.

After the lapse of the 5-year term the customer shall enter into an agreement for the loan's full repayment, at the latest within a 12-month period.

(b) EaSI - Working Capital of a permanent nature: for a term of at least 3 months and a maximum of 6 years, with the option of a 3-month grace period. Repayment: Monthly amortization instalments and posting of interest on 30/6 and 31/12 each year.

(c) EaSI - Financing for the purchase of fixed assets: for a term of at least 3 months and a maximum of 6 years, with the option of a 6-month grace period. Repayment: Monthly amortization instalments and posting of interest on 30/6 and 31/12 each year.

The maximum guarantee term is six years as of the execution date of the loan agreement.

​Interest rate:
​Basic floating rate applicable to SME financing, currently 5.85% plus margin and the levy under law 128/75.
The final interest rate (excluding the levy under law 128/75) cannot exceed 8% and it is lower than similar financing from the Bank's own funds by a rate of at least 0.5% thanks to the guarantee provided by EIF.
Currency:  EUR
​Collateral:

 No collateral except for any personal guarantees.

​Costs:
 • For overdraft facilities or revolving working capital (credit lines): €250/ 
   year
• For fixed-term Loans €250 one-off

Additional Services

Provision of training programs: The beneficiaries included in the EaSI program are offered customized
                                                           training programs
, and advisory and mentoring services.

General Information

  • The provision of such programs is obligatory subject to the program's terms and
  • They are implemented by consulting firms selected by the Bank.
  • The mentor's fees shall be borne by the beneficiary and they are withheld from the loan amount 
         upon its disbursement.
  • They are set in line with the company's age and the level considered reasonable in light of the 
          financing granted and the services provided.

Subject

The specific services and programs are customized following discussion and communication with the Mentor and include, for example, some of the topics listed below:

          • identification of the needs of the financed business;

          • training programs on topics such as Sales Development and Promotion, Business Sustainability and

             liquidity and financing;

          • e-learning programs

Cost

The cost of the services offered, as communicated by the partner companies, is set out below:

Active years of business ​Amount of financing  Fee paid 
Over 3 years (on the application date)  ​Regardless of amount  €210*
​Up to 3 years (as at date of application) Up to €15,000 €250*
​ €15,001 –  €25,000 ​€350*

*plus VAT

For more information, stop by one of our Branches today!

Also, you can submit your loan application at a NBG Branch

Required documentation

Company's Financial Data*

  • Ε3 tax forms for the last 3 years;
  • Copies of the Certificate of business commencement and any change therein issued by
         the competent Tax Office or the company's list of activities via the webpage: gsis.gr (recent print-
         out), certificate of registration and changes with GEMI.
  • For companies: Copies of a full set of the articles of association and any amendments there to
         (private agreements) depending on legal status: Minutes of the last General Meeting of the 
         shareholders or partners.

Businesses keeping account books by the single-entry method (former Category B accounts)

  • Copies of periodic VAT returns of current year and the respective period of previous year - Profit 
         & Loss Account and the respective annex (where available)

Businesses keeping account books by the double-entry method (former Category C accounts)

  •  Balance sheets for the last three years and the annexes attached hereto also signed by an
          accountant or published in GEMI;
  •  Post closing trial balance of secondary accounts for the previous financial year (December or
          June, as the case may be) signed by the company's accountant or legal representative (prior
          to the closing of Profit & Loss accounts);
  • Trial balance of secondary accounts for the last month and the respective balance for the 
          previous year signed by the company's accountant or legal representative.

Business owners'/ guarantors' economic data

  • E1 Income Tax Return Forms of individuals for the previous three years, copy of their Tax
         Clearance Certificates, and copies of their ID documents;
  • E9 Property Declaration Form of the previous year*

Documentation required by the program

  •  IKA (Social Insurance Foundation) Detailed Periodic Statements of the previous year or an IKA
          certificate to verify that staff is not employed by the business or (in case of a business under
          establishment or newly established) a Solemn Declaration signed by the company's legal 
          representative to verify that fewer than 10 people will be employed in terms of AWUs or that no
          staff will be employed by the business.
  •  IKA (Social Insurance Foundation) Detailed Periodic Statements and E3 Tax Form of the previous
          year of the partner or related companies*
  •  Business Plan, any suppliers' offers/ proforma invoices for the financed expenditures on fixed
          assets.
  •  Solemn declaration of eligibility and non exclusion.
  •  Declaration stating the classification of the business as an SME.
  •  Questionnaire for the loan applicant.

* Where available

The program is available: through to 18.3.2023 or until available funds have been used up.

Eligibility criteria for businesses
To be eligible, businesses need to meet the following criteria:

          • They should be micro-enterprises, as per Commission Recommendation 2003/361/EU, employing
            up to 9 people in terms of Annual Work Units (AWU) and the turnover of the last business year or
            the value of assets should not be higher than €2 million.

         • They should be businesses not active in non-eligible sectors, as such are described hereinbelow
            "Businesses non-eligible for financing".

          • They should be established in Greece.

          • They should not be subject to overall bankruptcy or fulfil the conditions of the applicable national 
            legislation as regards their inclusion in an overall bankruptcy procedure upon their creditors'
            request.  

          • They should not be involved in activities that are regarded as illegal as per current legislation (at 
            national, European and international level including the EU Charter of Fundamental Rights, as well
            as the European Convention on Human Rights and the respective protocols).

          • They should not be excluded, i.e.

               1. they should not be under bankruptcy, liquidation, compulsory administration (by virtue of court
                   decision) and, within this framework, they should not have entered into any agreement in the
                   past 5 years with the creditors, have suspended their business activities or be under any
                   respective regime, subject to the applicable national legislative and regulatory provisions;

               2. in the last 5 years, the person(s) responsible for the company's representation, management
                   and decision making should not have been convicted of any offence related to their professional
                   capacity following a decision with the force of res judicata, that could affect the company's
                   ability to meet its contractual obligations stemming from the program's agreement;

               3. in the last 5 years, the person(s) responsible for the company's representation, management
                   and decision making should not have received a conviction, by virtue of a res judicata decision 
                   concerning fraud, bribery, participation in criminal organizations, money laundering or any 
                   illegal act attempting to defraud EU interests;

               4. they should not be listed as excluded in the database set up and operated by the European
                   Commission by virtue of  Regulation (EU) No 1302/2008 of 17 December 2008;

on condition that items 2 & 3 do not apply when the company can demonstrate the existence of appropriate measures against the persons authorized to represent, make decisions or manage as regards any issues falling within the scope of the aforementioned decisions.


Non eligible Companies and Activities
Businesses considered as not being eligible for financing within the context of the present program are those whose activity is related to:

          √ Illegal Economic Activities (any production, trade or other activity which is illegal under the laws or
            regulations of the home jurisdiction for such production, trade or activity).

          √ Tobacco and Distilled Alcoholic Beverages

          √ Production of and trade in weapons and ammunition

          √ Casinos

          √ In the IT sector (restrictions): Research, development or technical applications relating to electronic
             data programs or solutions, which:
                    • aim specifically at:
          i. supporting any activity included in the EIF Restricted Sectors referred to above,
          ii. internet gambling and online casinos; or
          iii. pornography,
                    • are intended to enable illegal:
          i. entry into electronic data networks; or
          ii. downloading of electronic data.

          √In the Life Sciences sector (restrictions)
                When providing support to the financing of research, development or technical applications
                relating to:
          • human cloning for research or therapeutic purposes; and
          • Genetically Modified Organisms ("GMOs"),
             the EIF shall require from the EIF counterpart (i.e. the Bank) appropriate specific assurance on the  
             control of legal, regulatory and ethical issues linked to such human cloning for research or 
             therapeutic purposes and/or GMOs.


For further information you can visit the following links to the general information pages of European Union and European Investment Fund:
http://ec.europa.eu/social/main.jsp?catld=1081&langld=el
http://ec.europa.eu/social/main.jsp?langId=el&catId=1081
http://ec.europa.eu/social/microfinance
http://ec.europa.eu/social/socialentrepreneurship
http://www.eif.org/what_we_do/microfinance/easi/