Pan-European Guarantee Fund – EGF

Pan-European Guarantee Fund – EGF

Pan-European Guarantee Fund – EGF is a new funding program provided by banking institutions, in cooperation with the European Investment Fund, which is designed to support businesses that have been affected by the pandemic but are considered to be: (i) sustainable in the long term and (ii) capable to repay lenders or other financial institutions, if the economic impact of the pandemic is excluded.

Program characteristics

The financing is provided with favorable terms of pricing and a guarantee of 70% and aims to cover:

  1. Costs of implementing investment projects (tangible or intangible assets)
  2. Working capital needs

In addition, it is possible to refinance existing up-to-date liabilities (under specific conditions).

Businesses that will join the EFG will enjoy the following benefits:

  1. Guarantee by the European Investment Fund
  2. Favorable interest rate
  3. Flexible forms of financing & fast approval process
  4. Cover a wide range of needs

Beneficiaries

A beneficiary is defined as any individual or legal person who is based and operates in Greece and will invest within the Greek territory and in particular:

  • Small and medium-sized enterprises (up to 249 employees and with annual revenue less than EUR 50 million or annual balance sheet less than EUR 43 million).
  • Large Enterprises (at least 3,000 employees, in Annual Work Units).
  • Medium capitalization enterprises (Midcaps), i.e., enterprises that are not considered small and medium-sized enterprises and employ up to 3,000 employees, in Annual Work Units.

Forms of financing

  1. Long-term financing of Investment Plans. For upgrading / renovating equipment, investments for the purchase / renovation / construction of professional housing, RnD expenses, creation and expansion of distribution networks.
  2. Mid-term financing of working capital that covers needs related to business activity (raw materials, receivables management, etc.)
  3. Short-term financing that covers urgent needs such as raw-material and energy price increases etc.

Duration of funding

Loans of up to 120 months and for for mutual accounts up to 36 months with the option of conversion into a loan for another 3 years.

Repayment: monthly/ quarterly /semiannual amortized (equals or unequal instalments depending on the needs of each company.

Grace period: up to 12 months (payment of interest)

Interest rate: attractive interest rate with reduced margin due to the EIF guarantee, which can be limited to even more competitive levels if the company provides additional guarantees.

Early repayment: full of partial without a penalty.

Financing Purpose

  • Purchasing goods and raw materials
  • Accessing overseas markets with high order volumes
  • Supply Chain Smoothing and stockpiling
  • Addressing seasonality (e.g., tourism) and covering operating costs
  • Website organization and customer attraction
  • Managing stalled receivables and covering operational needs due to price increases
  • Expenses for creating and promoting new products
  • Penetrating new markets (geographically or new clientele)
  • Purchasing modern equipment and stat of the art technology for the development of the business
  • Purchasing, renovating/constructing professional buildings and improving existing infrastructure
  • Expanding to new facilities
  • Modernizing the vehicle fleet
  • Energy upgrade
  • Waste management
  • Research-development and investment in new methods of managing stocks (software licenses)
  • Investing in the digital image of the business
  • Creating or taking over distribution networks
  • Patent filing or acquisition.

Duration of the program

The Program is available until:

30.6.2022 for funding to be included in proportion to section 3.1 and 3.2 of the COVID 19 Provisional Support Framework and

31.12.2022 for financing that will be included in the De Minimis aid scheme.

Advisory services for investment projects

Evaluate your business goals and learn how to include them into the Pan-European Guarantee Fund with favorable financing.

MDC Stiakakis can support you throughout the process, from preparing and submitting the proposal to implementing it.

Subscribe to our Newsletter to stay informed for the new programs that open.

Contact us for further details:

Email: info@mdcstiakakis.gr

Τel. 2810 280985

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