The extension of the eligibility period for loans to be guaranteed by the COVID-19 Enterprise Guarantee Fund was announced. The new cut-off date is 30.06.22 from 31.12.21 originally set.

It is reminded that the objective of the Fund is to mitigate the impact of the COVID-19 pandemic on the operation of businesses, by enhancing their liquidity with working capital loans.

Budget of the Action - Guarantee Fund

The total funds available in the three rounds for the Guarantee Fund amount to €2 billion euros (€1 billion euros from the first cycle, 780 million euros from the second cycle and 220 million euros from the third cycle of the Action). For the grant of the guarantee fee, the financial contribution of resources of up to 250,000,000 euros through the Public Investment Program is maintained.

The loans will be granted to small, medium and large enterprises, no later than 30/06/2022 and are expected in the second cycle to approach the €2.5 billion while in the third cycle the 500 million euros. euros.

Under the first cycle, loans over €3.5 billion euros. The total amount of loans for all three cycles received by businesses will exceed €6.5 billion euros.

For theFirst & Second cycle of the Action, the resources of the Fund are co-financed by the European Regional Development Fund (ERDF) and the Greek State, part of which comes from the Operational Programme Competitiveness, Entrepreneurship and Innovation (EPAnEK) 2014-2020.

The third cycle of the Action is funded as part of the Union's response to the COVID-19 pandemic - React EU.

Eligible Enterprises

All businesses legally operating in Greece, except:

• offshore
• holding companies in other companies
• undertakings in the financial sector
• public bodies and their subsidiaries
• LRAs and their subsidiaries

Eligible Loans

Loans eligible for guarantee should have the following characteristics:

1. Loans to be concluded up to and including 31 December 2021
2. The purpose of granting the Loans will be working capital
3. Loans (including non-convertible PVs) with a duration of up to five (5) years including any grace period
4. The Loans will concern new business financing
5. It is forbidden to refinance/repay existing loans and credit lines, to finance a dividend payment program or share purchase, and to finance M&A

You can read more about the Guarantee Fund here.