NBG Loan for SMEs and Mid-Caps Security and Defence Programme

In cooperation with the European Investment Bank (EIB), we finance the implementation of investment or business plans related to the security and defence sector on particularly favourable terms, addressing the structural restrictions on access to financing faced by SMEs and MidCaps active in the sector.

The product at a glance

Budget and availability period

The programme’s budget is €200,000,000. The programme is available until 14.07.2029 or until the available funds have been fully allocated.

Objective

The objective of the programme is to enhance access to financing, on favourable terms, for SMEs and MidCaps active in the security and defence sector and/or implement investment or business plans in the sector. The programme aims to address the restrictions often associated with the specific features of the sector and the lack of specialized financing tools.

Financing amount

The maximum loan amount can reach €12,500,000, with a total investment plan budget up to €25,000,000.

Financing duration

The minimum loan term is 2 years and the maximum term cannot exceed the economic and technical life of the financed investment (for fixed asset loans).

Disbursement

The loan can be disbursed in a lump sum or in instalments until the expiry of the grace period of up to 2 years. The first disbursement should have been effected no later than 14.07.2029 and all disbursements should be completed no later than 14.07.2031.

Repayment method

The loan shall be repaid in quarterly or semi-annual principal instalments with a grace period option of up to 2 years.

Detailed information

What is the purpose of the financing?

Financing of working capital: Financing is available for business obligations related to the operating cycle and arising in the ordinary cause of business.

Loans for investments in tangible or intangible fixed assets: Examples of eligible expenditure include expenses for the purchase, replacement or expansion of tangible assets, Research, Development and Innovation expenditure, and the purchase of software licenses.

What are the benefits for the beneficiaries ?

Beneficiaries receive a reduced interest rate compared with the annual interest rate that would apply to a similar NBG loan without EIB participation.

Which are the eligible beneficiaries?

Eligible businesses must meet the following criteria:

Registered, operate and primarily invest in Greece, although companies registered and operating in other EU Member States are not excluded.
They are SMEs, employing fewer than 250 full-time employees, in terms of annual work units (AWUs), or
They are MidCaps employing between 250 and 2,999 full-time employees, in AWUs.
They are not active in non-eligible (excluded) sectors and activities.
They are active in eligible business line codes (NACE) as described in detail here.
For businesses whose business or investment plan financing will be included in the security and defence categories, the security and defence eligibility criteria must also be met.

What are the features of the loan granted through the programme?

Maximum loan amount: Up to €12,500,000, with maximum total investment plan budget up to €25,000,000.
Loan purpose: working capital or investments in tangible or intangible fixed assets.
Loan term: minimum two years, while the maximum term shall not exceed the economic and technical life of the investment being financed.
Repayment method: in quarterly or semi-annual principal instalments with a grace period option of up to two years.
Base Rate: Euribor (in the event of a negative rate, the value of zero shall apply instead).
Margin: There is a discount on the applicable interest margin compared with the annual interest rate that would apply to a similar NBG loan without EIB participation.
Exemption from the charge under Law 128/1975 (currently 0.6%).
Frequency at which interest is posted: Interest is posted on 30/6 and 31/12 of each year.

What are the eligibility criteria for security and defence investments and spending:

The security and defence sector includes technologies, products or services that have: a) exclusive military/police use, b) exclusive use in civil protection/private security or c) dual use.

Dual-use products are technologies, products or services that can be used for both civilian and military purposes. These products are not military in nature but can be adapted or exploited in a way that contributes to military capabilities.

A. The Company must use the financing for:

A.1 Development and production of security and defence technologies / products /services.
A.2 Investment in security and defence infrastructure and related equipment.

B. The company is an active supplier in the defence sector as:

B.1 a supplier of the defence sector (security and defence technology /products /services)
B.2 a participant in defence programmes
B.3 a defence investor as a shareholder
B.4 a user of security and defence equipment/infrastructure
B.5 a company designated as a security and defence company by a national /EU body or by NATO.

The European Investment Bank