Working capital loans with interest rate subsidy from the Western Macedonia Development Fund

If your business operates in the Region of Western Macedonia, you can obtain working capital financing on favorable terms.

The product at a glance

Purpose of Funding

You can receive a co-financed working capital loan of €5,000-€50,000, with 40% equity participation from the Western Macedonia Development Fund, which is managed by the Hellenic Development Bank.

Reduced interest rate

You can have a reduced interest rate compared to the corresponding loans of NBG, due to the co-financing with the Hellenic Development Bank.

Favorable conditions

You can obtain working capital at a fully subsidized interest rate of the bank's participation for the first 2 years of the loan and with low management costs.

Duration of financing

From 24 to 60 months, including a grace period of 6-12 months.

Method of repayment

Repayment is made through equal quarterly or semi-annual installments.

Deadlines for implementation

The contract is signed within 2 months of the loan’s approval date and disbursements are made in one lump sum or installments within 3 months of the signing of the contract.
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Detailed information

From €5.000-€50.000, per company. In addition, the following should apply:  

  • for companies established up to 2019, it will not exceed 25% of the total turnover of the year 2019; or 
  • for businesses established after 2019, it will be based on the liquidity needs that the beneficiary must meet from the date of the loan and for the next 18 months, which must be demonstrated with sufficient justification and documentation. 

One (1) loan may be approved per business.

The usual collateral is required. 

For collateral security, the coverage percentage cannot exceed 50% of the loan amount as agreed in the loan agreement. 

Exception: the permanent and sole residence of the borrower is not pledged if the borrower is a natural person.
 
A lump sum of 0.5% of the loan amount as stated in the contract.
The funding falls under a de minimis aid scheme (De Minimis Regulation).
  • For the first two years of the loan's duration, and as long as the company retains the right to the subsidy, the total interest rate of the bank's participation will not exceed 8% (plus the contribution of Law 128/75), it will be fixed and subsidized by the HDB. It will consist of the sum of the zero-based interest rate plus a margin, as determined for each borrower in the decision of the competent approving body of the Bank, plus a contribution under Law No 128/75, which is not subsidized and is in any case borne by the borrower.
  • At the end of the above 2-year interest rate subsidy period or earlier, in case the company loses the right to the subsidy, the interest rate will consist of the sum of the Euribor 3M base rate (limited to zero in case of a negative rate) and the margin, which will be determined per borrower in the decision of the competent approving body of the bank, plus the contribution of Law 128/75, and will be borne entirely by the borrower.

At the above interest rate, 60% of the loan relating to the Bank's participation is repaid, while the remaining percentage (40%) relating to the participation of the Fund remains interest-free throughout the loan agreement.

It should be noted that the contribution of n. 128/75 applies to the entire loan (100% of the loan).

Eligible businesses are those that meet the following criteria:

  • is a small or very small business operating legally in the Region of Western Macedonia,
    Note: "small Business" and "very small business" means a small or a very small enterprise, respectively, under Commission Regulation 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty (OJ L187/1 of 26.6.2014, p.70), as amended.
  • is not a Troubled Business or was not a Troubled Business on 31.12.2019, but became a Troubled Enterprise during the period from 1.1.2020 to 30.6.2021 and has not received (a) rescue aid (or has received rescue aid but has repaid the loan or terminated the guarantee agreement at the time of applying for funding) or (b) restructuring aid (or has received restructuring aid but is no longer subject to a restructuring plan at the time of applying for funding),
    Note: "Troubled Business" means an undertaking which falls within the definition of a firm in difficulty within the meaning of Article 2, point (18) of Commission Regulation (EU) 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty, as amended. 
  • be a company incorporated up to the time of submission of the financing request to the bank,
  • not to engage in an Ineligible Activity (see. see reference below for a list of Non-Eligible Activities).
  • as of the date of the Contract, not be in arrears or default on any other loan or lease granted either by the Bank or by another financial institution in the context of checks carried out under the Bank's internal instructions and credit and collection policy for more than ninety (90) days (including any already settled debts)
  • be deemed creditworthy, under the applicable credit policy and the Bank's internal procedures,
  • be an undertaking for which the grounds for exclusion of Article 40 of Law No. 4488/2017 (Government Gazette A 138/139), as applicable,
  • not be an undertaking for which an order for recovery of previous illegal and incompatible State aid is pending under an EU or CJEU decision.
  • if it is an enterprise that has been included in EAT's programs that have expired or are currently in force, it must not have exhibited any unfavorable commercial behavior in the repayment of its debts, such as loan cancellation or related arrears of more than ninety (90) days or, in case it has exhibited unfavorable commercial behavior (loan cancellation), it must have repaid its debt in full before submitting the funding application,
  • not be located in a Non-Cooperating Jurisdiction,
    Note: "Non-Cooperating Jurisdiction" means any jurisdiction that does not cooperate with the European Union or the Hellenic Republic concerning the application of the internationally agreed tax standard (i.e. any jurisdiction designated as "non-compliant" by the Organization for Economic Co-operation and Development (OECD) and the World Forum on Transparency and Exchange of Information for Tax Purposes, from time to time, unless otherwise notified by the HDB), as the companies operating in these jurisdictions are "offshore" companies according to the decision No. 1108437I2565IDOSI 2005 of the Deputy Minister of Finance (FEK’B 1590).
  • not be a legal person governed by public law, a first and second-tier local authority, a municipal or public enterprise, a public body or a subsidiary thereof, a financial institution or a company listed on a regulated market,
  • not be a legal person or an association of persons or a non-profit company (e.g. associations, clubs, groups, NGOs)
  • not be a holding company,
  • not have received any other loan under this act of the WMDF.

Excluded from participation in the program are those enterprises that are active, for example, in the production and trade in arms and ammunition, in the manufacture, processing, and marketing of tobacco and tobacco products, in genetically modified food, and in illegal activities according to national law, in activities exempted by Regulation (EU) 1407/2013 and Regulation (EU) 651/2014, in export activities to third countries, etc. 

The Ineligible Activities are listed in more detail here

 
 

 

Loan in 4 steps

Step 1: Submit your application
Go to www.ependyseis.gr and submit your application in the State Aid Information System.
Step 2: Visit the branch
After the final submission of your application to the SAIS, you will need to visit one of our branches to get information, provide the necessary documents and submit your application.
Step 3: We assess your application

After studying your documents, we will carry out a credit check for your business. 

Step 4: We disburse your loan
If your application is approved by both the National Bank and the Hellenic Development Bank, you will need to visit your cooperation branch to sign the relevant loan agreement. Once the financing agreement is signed, the approved amount is disbursed to your NBG current account. 

Discover other business financing options

Get access to other financing for your business, such as the Loans guaranteed by the Covid-19 Business Guarantee Fund (Round 3)

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