Hellenic Development Bank Programmes

Hellenic Development Bank Programmes

New HDB Co-Financing Programmes

At ProCredit Bank we support the development of your business with the new co-financed programs of Hellenic Development Bank that offer you 40% interest-free financing and 3% interest rate subsidy for the first two years.

 

Main features of the programmes

The new financing programs cover the needs of SMEs for working capital and/or implementation of investment projects.

The new loans co-financed by HDB's Business Growth Fund Portfolio are aimed at newly established or existing SMEs.

HDB Funding Programmes

They meet your business needs in the areas of liquidity, green transition and digital transformation. Specifically:

  • Business Liquidity Co-financed Loans – for working capital
  • Green Co-financed Loans – for investment projects related to green transition
  • Digitalization Co-financed Loans – for investment projects related to digitalization

Interest-free financing for 40% of the loan

Through the co-financing of HDB's Business Growth Fund Portfolio, 40% of the loan is granted interest-free.

3% interest rate subsidy

For the first 2 years, a 3% subsidy from HDB's Business Growth Fund Portfolio is applied on the remaining 60% of the loan.

For the Business Liquidity Loans, the 3% subsidy only applies to businesses that have not obtained a loan from another HDB programme.

Interest rate

Financing is provided with a variable interest rate (Euribor 3m + margin). A fixed interest rate is also available.

The contribution of Law 128/75 (0.60%) is added to the interest rate.

Collaterals

To obtain a loan, tangible or intangible collateral, of up to 100% of the loan amount is required.

Loan repayment

The loan is repaid in equal installments that are paid every 1 or 3 months.

There is no charge for early repayment, in whole or in part, whether your loan has a fixed or variable interest rate.

Restrictions

The refinancing of existing loans and lines of credit, the financing of a dividend payment plan or the purchase of shares, and the Financing of Acquisitions and Mergers are not allowed.

Apply online on HDB's KYC platform and choose ProCredit Bank as your partner bank.

Green Co-financed Loans

Implement investment plans for the green transition of your business, with 40% interest-free financing and 3% interest subsidy.

Amount of funding

The loan amount cannot exceed EUR 8,000,000 or be less than EUR 80,000.

Loan duration

The loan duration is from 2 to 10 years. This period includes the grace period which can reach up to 24 months. 

Eligible expenses

The program consists of 3 sub-programs covering different expenses:

Sub-programme 1: Green Mobility indicatively covering:

  • Supply and installation of recharging and refueling infrastructure for low or zero-emission vehicles.
  • Upgrading or expanding existing power stations into low or zero-emission vehicle charging stations.
  • Creation of local units of production or storage of electricity through Renewable Energy Sources for the operation of recharging infrastructures.

Sub-programme 2: Energy-Saving / Energy Upgrade indicatively covering:

  • Purchase, construction, installation of new and unused equipment to reduce energy consumption and increase energy efficiency, in internal and external areas of the company (including the costs of setting up the area).
  • R&D expenses, green certification, water-saving or purification, material recycling, upgrade plans, energy certifications, staff training, etc. provided they are directly related to the energy efficiency project, while under certain conditions they may also include other costs.
  • Services provided by Energy Service Companies (ESCos)

Sub-programme 3: Energy Production through Renewable Sources indicatively covering:

  • Purchase and installation of equipment, space configuration, production, storage, distribution and transmission of produced energy, which comes from renewable sources such as: Solar Energy, Wind Energy, Geothermal Energy, Energy production from biomass, bio-liquids or biogas.
  • Space configuration for the production of solar, wind, geothermal, biomass, etc. 

State aid framework

The Fund operates in accordance with the General Exemption Regulation (EU Regulation 651/2014), as amended and in force, and in particular with articles 17, 38b (after its publication), 39 and 41.

According to these, the conditions and provisions of the common provisions of the Regulation should be applied to the sub-programmes (Chapter I, articles 1-9)::

Sub-programme 1: The provision of aid must meet the conditions of article 17 of the General Exemption Regulation (GER), controlled by the Credit Institution. 

Sub-programme 2: The aid provision must meet the conditions of article 39 of the GER controlled by the Credit Institution. In addition, after the publication in the EU Journal of the amendment of the GER in accordance with Notice C(2023) 1712 final and in particular the entry into force of Art. 38b, Sub-programme 2 can also finance ESCos to implement energy efficiency investments on behalf of third parties.

Sub-programme 3: The provision of aid must meet the conditions of article 41 of the GER controlled by the Credit Institution.

Apply online on HDB's KYC platform and choose ProCredit Bank as your partner bank.

Digital Upgrade Loans

They are granted for investments related to digital transformation, with 40% interest-free financing and 3% interest subsidy.

Amount of funding

The loan amount cannot exceed EUR 1,000,000 and be less than EUR 25,000.

Loan duration

The loan duration is from 2 to 10 years. This period includes the grace period which can reach up to 24 months.

Eligible expenses

It covers costs for the digital upgrade of SMEs. Indicatively:

  • Development of digital infrastructure (e.g. internet, broadband, cloud, mobile networks, satellite technologies, IoT, etc.)
  • Investments in equipment (Hardware)
  • Software and data investments
  • Digitization of provided services
  • Services relating to IT Systems
  • Digital Upgrade Services
  • Human capital development
  • Development of a strategic monitoring system
  • Costs of consultants/ researchers

State aid framework

The state aid framework, under which the Business Digital Upgrade Fund falls, is Regulation (EU) no. 1407/2013 (De Minimis).

Apply online on HDB's KYC platform and choose ProCredit Bank as your partner bank.

Business Liquidity Loans

 

Secure working capital, with 40% interest-free financing and the possibility of a 3% interest rate subsidy for the first 2 years.

Amount of funding

The loan amount cannot exceed EUR 1,500,000 and be less than EUR 10,000.

Loan duration

The loan duration is from 2 to 5 years. This period also includes the grace period which can reach up to 12 months.

Eligible expenses

The loan covers expenses related to the commercial and trading cycle of SMEs, and their daily needs. Indicatively:

  • Raw and auxiliary materials
  • Goods and services
  • Goods
  • Overhead cost
  • Labor costs
  • Energy cost

State Aid Framework

The state aid framework, under which the Business Liquidity Fund falls, is Regulation (EU) no. 1407/2013 (De Minimis).

Apply online on HDB's KYC platform and choose ProCredit Bank as your partner bank.

Eligibility Criteria

Businesses must meet the eligibility criteria:

1. They are Small and Medium Enterprises (SMEs).
 
2. They maintain an establishment and operate legally in Greece.
 
3. They have been established by the time of submitting the financing application to ProCredit Bank.
 
4. They are not considered problematic.
 
5. They are up-to-date with their debt obligations to the bank on the date of the application (they have no debt for a period longer than 90 days).
 
6. They are up-to-date with their tax and insurance obligations at the time of the loan disbursement.
 
7. They are considered credit-acceptable in accordance with the applicable credit policy and internal procedures of ProCredit Bank.
 
8. There are no grounds for exclusion, according to article 40 of Law 4488/17 (A 137/139/17).
 
9. There is no pending order for the recovery of previous unlawful and incompatible State aid, based on an EU or CJEU decision.
 
10. They have not been subject to Insolvency.
 
11. If they have joined HDB (formerly ETEAN) programs that have expired or are in effect:
     They have not shown adverse behavior in repaying their debts (loan termination or overdue debts for a period longer than 90 days).
     or
     ΈThey have shown adverse behavior (loan termination), but have paid off their debts in full before submitting the financing application.
     or
     The amount of guarantee debt has not been paid by HDB (if it is a guarantee scheme) or, if the specific debt has been confirmed to the relevant Public Finance Service (PFS)*, it has entered into a regulatory regime that continues to be in force on the date of submission of the financing application.
 
12. They have not been excluded, in accordance with the NBG's Exclusion Policy, during :
 
  ● Submitting a funding request to the EXO (financial institution)
  ● Conclusion of the Final Recipient Agreement
 
13. They do not belong to non-eligible businesses and are active in eligible activities, as specified in the table of eligible Activity Code Numbers (ACN).
 

Apply online on HDB's KYC platform and choose ProCredit Bank as your partner bank.