Business loans with interest rate subsidy from the Entrepreneurship Fund III (ΤΕΠΙΧ III)

Business loans with interest rate subsidy from the Entrepreneurship Fund III (ΤΕΠΙΧ III)

The new program for loans through TEPIX III is expected to start in January, as announced by the Deputy Minister of National Economy and Finance.

The initial budget of the Fund amounts to 500 million euros, and with leverage through the banking system, a loan portfolio of 2.1 billion euros is expected to be created.

The new fund is aimed at start-ups, newly established, new, and existing, very small, small and medium-sized enterprises.

The new program has two axes.

  1. The axis of guarantee, with the state guaranteeing up to 80% of the loan to the enterprise so that small professionals who would not otherwise have access to financing are included.

Furthermore, regarding the guarantee, it is divided into two subcases:

  • On one hand, the General Entrepreneurship segment for which a 70% loan guarantee will be provided and
  • On the other, the Newly Established Businesses segment (i.e., those operating up to 5 years), for which an 80% loan guarantee will be provided along with an additional 2% loan subsidy
  1. The axis of interest subsidy, i.e., in a loan 40% will be interest-free, while on the 60% a state subsidy of the bank's interest rate by 3% will be added, which entails very low borrowing interest rates.

Business Loans for financing investment projects (for investment purposes)

  • 25 thousand euros up to 1.5 million euros through de minimis regulation
  • Up to 10 million euros with a general exemption regulation
  • Eligible expenses: Expenses of investment projects of companies which have not been implemented at the time of loan approval
  • Investment projects can either be implemented within the framework of a state aid program or independently, with the approval decision of a banking entity
  • Repayment duration: 5 to 10 years with the possibility of a grace period of up to 36 months
  • The loan is disbursed in one lump sum or in parts, within 24 months from the signing of the contract

Based on the above framework, the ministry estimates that approximately 1,530-1,840 businesses will be supported, receiving an average loan amount of 250,000-300,000 euros.

The 500 million euros of TEPIX III come from the new ESPA, through the "Competitiveness 2021-2027" Program, while there is also the possibility of contributing resources from other sources of public funding, such as regional (PEP) and sectoral programs of ESPA 2021-2027.

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