NBG Loan for SMEs & MidCaps & Social Objectives

The objective of the program is to strengthen access of SMEs and MidCaps to bank financing on particularly favorable terms for the implementation of their investment or business plans that contribute to social objectives, with particular emphasis on the ones that promote youth employment under the “Jobs for Youth” initiative or support the “Women’s Economic Empowerment” initiative.

For businesses satisfying all eligibility criteria for financing under the EIB operation, NBG grants a financial bonus reflected in the interest rate, which is at a discount compared with the annual interest rate that would be charged by NBG on a similar loan without the participation of the EIB.

In addition, those businesses that support youth employment under the “Jobs for Youth” initiative or female entrepreneurship under the “Women’s Economic Empowerment” initiative, may benefit from further discount in the interest rate.

• Maximum amount of financing: up to €12,500,000 It shall cover eligible expenses with maximum total investment plan budget up to €25,000,000.
• Purpose of financing: investments in tangible or intangible fixed assets or working capital of a more permanent nature.
• Duration of financing: The minimum loan term is 2 years and their maximum term cannot exceed the economic and technical life of the investment being financed.
• Method of payment:  quarterly or semi-annual principal instalments with a grace period option of up to two (2) years.
• Base Rate: 3month 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 be charged by NBG on a similar loan without EIB participation.
• Exemption from the obligation to pay the charge under Law 128/75 (currently 0.6%). 
• In addition, businesses that support youth employment under the “Jobs for Youth” initiative or female entrepreneurship under the “Women’s Economic Empowerment” initiative, may benefit from further discount in the interest rate.
• Frequency at which interest is posted: Interest is posted on 30/6 and 31/12 of each year.

Beneficiaries of the “Jobs for Youth” initiative are businesses that meet one of the following criteria: 

(a) they have employed over the last six months at least one young person between 15 and 29 years old as at the date on which they obtain the respective benefit of their employment, training or work experience (“Jobs for Youth” initiative).  (or five persons in the case of MidCaps) or plan to employ at least one young person (five in the case of MidCaps) in the next six months (from the date of signing the agreement), and they undertake to continue such employment for at least one year, and/or
(b) in the last six months they have provided a vocational training or internship position to at least one young person (five in the case of MidCaps) or in the next six months (from the date of signing the agreement) they plan to provide a vocational training or internship position to at least one young person (five in the case of MidCaps). The training/ internship must last at least three months and be provided for in a valid cooperation agreement with a technical school, university or public employment organization and/or be confirmed by a letter signed by such Organizations and/or be part of the standard vocational training or internship program of the business financed hereunder, and/or
(c) in the last six months they have participated in a young entrepreneurship program of a Non-Governmental Organization or educational institution, or they plan to participate in such a program in the next six months.
Please note that interested companies can only join one of the two programs providing an additional reduced interest rate, i.e. either through the “Jobs for Youth” initiative or through the “Women’s Economic Empowerment” initiative.

Beneficiaries of the “Women’s Economic Empowerment” initiative are businesses that meet one of the following criteria: 

(a) Women’s Entrepreneurship:
At least 51% of the company’s shares is held by women.

(b) Women’s Leadership 

• women are represented in the Executive Management/Administration by at least 40%, or 
• women are represented in the Investment Committee, if any, by at least 40%, or female non-executive members of the Management represent at least 40%, or  
• women are cumulatively represented among all members of the Management (executive and non-executive members of the Board) by at least 33%.

The relevant solemn declaration should state the criterion and the exact percentage fulfilled by the company and be accompanied by the relevant supporting documents, such as a recent GEMI certificate regarding the company’s current representation, the minutes of the most recent General Meeting of Shareholders stating the names of the shareholders who attended and the shares they hold, etc.).

Please note that interested companies can only join one of the two programs providing an additional reduced interest rate, i.e. either through the “Jobs for Youth” initiative or through the “Gender Equality and Women’s Economic Empowerment” initiative.