The first Innovation Guarantee Fund starts today, which aims to strengthen the competitiveness of companies that research and innovate from the Hellenic Development Bank (HDB).
Through this innovative financing program available through partner Banks, HDB is launching a hybrid product that combines loan guarantee and up to 20% of loan capital, based on the achievement of innovation criteria and ESG (ie Environmental). and Corporate Governance criteria) enhancing innovative entrepreneurship in practice. Receiving the grant reduces the remaining loan to be repaid accordingly.
The guarantee provided by the Hellenic Development Bank (HDB) is 80% of the loan amount, significantly reducing the credit risk of the Banks. This guarantee is reflected in better financing terms for the business at the interest rate and collateral received. For the first time in a financing program of the Hellenic Development Bank, the achievement of innovation criteria and ESG criteria is connected with the reduction of the outstanding loan amount, offering a significant bonus, especially to young entrepreneurs who dare to innovate.
Great interest was shown by the credit institutions for the participation in the new Innovation Guarantee Fund.
Specifically, nine Banks have financing with the guarantee and the terms of receiving a grant for the Fund, which are: Piraeus Bank, Alpha Bank, Eurobank, Attica Bank, Pankritia, Optima Bank, Chania Cooperative Bank, Thessaly Cooperative Bank and Cooperative Bank.
Through the Fund there is the possibility of total funding of 140m. euro. Each beneficiary company can apply for a bank loan from 25,000 euros to 400,000 euros, to meet its needs in financing investment plan and working capital, covering relevant operating costs related to research and innovation.
The duration of the loan is up to 10 years, combining a grace period of 1 to 3 years.
According to the terms of the Fund, Banks do not receive collateral for loans up to 50,000 euros, while for larger amounts there is a ceiling of 20% of the loan on collateral. At the same time, in any case, the pre-notation of the permanent and unique residence is prohibited.
Eligible companies are start-ups and existing micro, small and medium-sized enterprises (SMEs), of any legal form, which are innovative in nature based on a business plan. Indicatively, among the eligibility criteria are whether the company is registered in the register of Elevate Greece, the percentage of its research and innovation expenses in relation to its total operating expenses, any research and innovation awards that have been awarded to it or a technological right registration and other.
The Innovation Guarantee Fund strengthens the culture of rewarding SMEs in the direction of good practices, such as investing in research and innovation, reducing energy consumption, increasing the proportion of women in positions of responsibility, investing in education the existence of a policy and methodology for measuring customer satisfaction, the existence of a data security policy and others.
The Minister of Development and Investment, Adonis Georgiadis stressed: “The Hellenic Development Bank proves in practice that it is in line with the developments and pioneers with new hybrid financial products that we see for the first time in the Greek market. This new program will enable Greek companies to know and integrate the ESG viability criteria which are now key criteria for selecting investors “.
The Deputy Minister of Development and Investment, Giannis Tsakiris, pointed out: “The Hellenic Development Bank is today an example to be imitated in the creation of financial instruments with criteria of sustainable development. of climate change “.
The President and CEO of the Hellenic Development Bank-HDB Athena Hadjipetrou stated: “At HDB we prove that we support those who dare, innovate and operate in practice! For the first time, innovation is supported with a hybrid financial tool that combines reward “The involvement of the ESG criteria will continue to be a central focus of our planning and other programs in the future to support healthy entrepreneurship.”
The Executive Vice President of the Hellenic Development Bank-HDB Pantelis Tzortzakis stated: “Supporting innovation is a strategic goal of the Hellenic Development Bank and this financial tool fills a market gap and alleviates the risk taken by innovators. “InnoAgora that we have recently developed and that is offered for free to every Greek company, is the most suitable combination to win the bet of extroversion and competitiveness”.
Application process
The expression of interest of the Company, takes place through the State Aid Information System (PSKE), at the website www.ependyseis.gr stating the Cooperation Bank, from which it wishes to be financed. At the same time, the company can register for free in the InnoAgora interconnection platform powered by HDB through the electronic address www.innoagora.gr
Learn more about the Innovation Guarantee Fund here.
Watch the informative video
Source: Capital
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