“Who Cy for funding and rush to the banks to submit applications, it is estimated that the budget of the program, which uses 500 million euros of public funds, will use a total of 2.2 billion euros in loans.
It is noteworthy that as the executive director of the Hellenic Development Bank (HDB) announced today. Ismenis Papakirillou, TEPIX III within a few days of operation exceeded 5000 applications. Mrs. Papakirillou has not provided information about the total amount of loans requested by small and medium enterprises, but from the number of applications it can be concluded that they are hundreds of millions of loans. Thus, it is estimated that the “window of opportunity” for small and medium-sized enterprises to request financing is closing very quickly, and late movers are at risk of being “out of the water”.
The market, as reported by the bank managers, was “thirst” for new financing, as TEPIX III is the first major financial program activated this year and businesses have been waiting for it since the beginning of the year. Its details Bank of Greece showed that in the first months of the year, SME financing through various programs had dropped to very low levels, while banks indicated that there were many businesses that started preparing their applications for TEPIX III quite early.
Beware of interest rates…
Entrepreneurs should also be very careful when choosing a bank to work with each conducts its own politics and are considered very large differences in interest rates.
THE: Development Bank of Greece The program management organization has published detailed data on lending rates from each bank and additional important information such as collateral requirements. It is noted that loans are divided into two categories: investment and working capital loans.
In particular, banks offer fixed interest rates for investment loans with a maximum limit of 7.00% to 10.80%. It is noted that there are few products in this category with a fixed interest rate, five in total.
All banks excepted Karditsa Cooperative, they provide investment loans with a floating interest rate based on the 3-month Euribor.
In this case, the maximum spread (Euribor premium) ranges from 2.00% to 7.40%. Some banks have loans at a lower rate for larger businesses and separately at a smaller rate for smaller ones.
The maximum collateral limit as a percentage of the loan amount is set at 100% for all banks and all products, which is also the maximum allowable limit of the program. The only exception Piraeus Bank’s small and medium business loans which are given only with no debt collateral.
When it comes to loans available for working capital, they are also large differences between individual banks.
There are only five fixed rate products with maximum interest rates ranging from 8.05% to 10.80%. For floating rate products, the 3-month Euribor spread fluctuates 2.00% to 7.40%.
Most loans are granted collateral up to 100% of the loan. Exception: two Eurobank and one Piraeus Bank products offered without real collateral.
It TEPIX III credit fund was established within the framework of the Entrepreneurial Fund III in order to provide SMEs with loans for investment purposes and special purpose working capital under particularly favorable conditions, as reported by the Hellenic Development Bank.
The fund pays for each loan 40% of the capital is interest-free, and the remaining 60% is disbursed through the Credit Institution charging appropriate interest rates as per its credit policy reduced by at least 25 bps (in base units). In addition, the Fund may subsidize part of the interest rate applied by the credit institution to its funds (3%) for the first 2 years of the loan (from the 1st disbursement).
It is the fund’s budget 200 million euros. Including the 60% participation of credit organizations in each grant, a total credit portfolio of about 450,000,000 euros is formed.
Guarantee fund
Finally, one of the most serious problems faced by small and medium-sized enterprises in terms of access to credit can be overcome with new low-cost credit programs. Development Bank, which provide for a reduction in collateral requirements.
To his credit TEPIX III Guarantee Fund, which has 300 million funds and will offer 1.7 billion loans with leverage, zero collateral is provided for small amounts, and up to 30% credit for larger amounts.
This means that for a loan of 300,000 euros, the value of the pledged property should not exceed 90,000 euros.
The maximum percentage of collateral provided by the company is as follows:
- For loans up to EUR 50,000, only debt securities are accepted.
- For loans of EUR 50,001 and above, real collateral is taken up to a maximum of 30% of the total loan.
The TEPIX III Guarantee Fund was established to provide guaranteed investment loans, special purpose working capital loans and special purpose working credit working capital loans to SMEs.
In addition, it provides an interest rate subsidy of 2% for businesses in the Attica and South Aegean regions and 3% for businesses in other regions of the country for the first two (2) years of financing and finally, the loans are provided with zero commission.
The TEPIX III Guarantee Fund is divided into two Sub-Funds and is targeted at specific business categories. Analytical.
The TEPIX III Guarantee Fund subsidizes 100% of the guarantee fee for the entire duration of each credit agreement. It also subsidizes part of the loan interest rate. The subsidy applies to the first 2 years of the loan (from the 1st disbursement) and will reduce the loan rate by 2% (or 200bps) for businesses operating in the Attica and South Aegean regions and by 3% (or up to 300bps) for businesses operating in the remaining regions. for businesses. In this way, the total cost of borrowing for he company is significantly reduced.
