Development Bank helps small and medium-sized enterprises – New low-interest tools are coming in the fall

The presentation of the new programs of the Hellenic Development Bank for the financing of small and medium enterprises, was made yesterday, at the Board of Directors of BEA, its General Manager, Mr. St. Sougioutzoglou, invited by the president, P. Ravani and the Administration.

As he initially pointed out, the Hellenic Development Bank Societe Anonyme (formerly ETEAN SA), is now introduced to businesses, as the link in the financial cycle of financing, between the small and medium enterprise and the commercial bank, assuming that part of the business risk, which the bank cannot undertake.

According to data quoted by Mr. Sougioutzoglou, in 2020 the Development Bank gave 40% of all loans in the market and in 2021, 25%. In total, 8 billion, in borrowing products.

Businesses through Development develop cheaper borrowing, due to low interest rates, since the Development Bank, having state resources, does not aim at business profit. Indicatively, in a loan from the Entrepreneurship Fund program (TEPIX II), the commercial banks cover 60% and the Development Bank, 40%.

Then, Mr. Sougioutzoglou presented the new products of the Bank, such as:

– the Loan Guarantee Fund of Audiovisual Production Companies, in order to provide a loan guarantee through the cooperating Banks, in order for the Small and Medium Enterprises operating in the audiovisual production sector to have access to financing.

– the Innovation Guarantee Fund, which is the first financial instrument to support innovative start-ups and existing Very Small, Small and Medium-sized Enterprises (SMEs), for the first time, by providing a loan guarantee and a grant of 20% of the loan capital .

According to Mr. Sougioutzoglou, in the autumn the Development Bank will proceed with the planning of new financial instruments for investments up to 20 million euros, which will be directed in three pillars:

– Green development even for the purchase of mechanical equipment

– Digital upgrade of technological technological equipment

– General investments.

The Members of the Board of Directors of BEA, asked questions to the General Manager of the Development Bank, pointing out all, the vital factor for the small entrepreneur and the self-employed, which are the guarantees of the borrowers required by the commercial banks, but also the other conditions that often exclude, the very small and small business, from the financing programs.

The NA Vice President Costas Damigos, stated: “The primary goal of the Athens Chamber of Crafts is to reliably inform its Members about any financial instrument based on state resources, but also to intervene, to facilitate the integration of as many as possible. entrepreneurs to build on their viability “.