The Hellenic Development Bank (HDB) launched the first Innovation Guarantee Fund that aims to enhance the competitiveness of research and innovation companies (HDB).

Through this innovative financing programme, available through partner Banks, the Bank of Cyprus HDB offers to the market a hybrid product that combines the provision of a loan guarantee and a grant of up to 20% of the borrowed capital, based on the achievement of innovation and ESG criteria (i.e. Environmental, Social and Corporate Governance criteria) enhancing innovative entrepreneurship in practice. The receipt of the grant correspondingly reduces the remaining loan to be repaid.

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 enterprise in the interest rate and in the collateral received. For the first time in a financing program of the Hellenic Development Bank, the achievement of innovation criteria and ESG criteria is linked to the reduction of the outstanding amount of the loan, offering a significant bonus, especially to young entrepreneurs who dare to innovate.

Great interest was expressed by the credit institutions in participating 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
• Pancretan
• Optima Bank
• Cooperative Bank of Chania
• Cooperative Bank of Thessaly
• Cooperative Bank of Epirus

Through the Fund there is the possibility of a total financing of a total amount of 140 milliion euros. Each beneficiary company can apply for a bank loan from 25,000 euros to 400,000 euros, to cover its needs in financing an investment plan and working capital covering relevant operating costs related to research and innovation.

Duration and conditions of the funding programme of the HDB

The duration of the loan reaches 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 in collateral. At the same time, in any case, it is forbidden to mortgage the permanent and sole residence.

Eligible businesses are start-ups and existing micro, small and medium-sized enterprises (SMEs), of any legal form, which are innovative in nature on the basis of a business plan. Indicatively, among the eligibility criteria are:

• whether the business is registered in the Elevate Greece register
• the percentage of its research and innovation expenditure in relation to its total operating expenses
• any research and innovation prizes awarded to it
• some registration of a technological right and others

Through the "Innovation Guarantee Fund", the reward culture for SMEs is strengthened in the direction of good practices, such as:

• investing in research and innovation
• the reduction of energy consumption
• increasing the proportion of women in positions of responsibility
• investing in staff training
• the existence of a policy and methodology for measuring customer satisfaction
• the existence of a data and other security policy

Application Procedure

The Company's expression of interest is made through the State Aid Information System (PASKE), at the following e-mail address: www.ependyseis.gr by indicating the Cooperation Bank from which it wishes to receive funding.

At the same time, the company can register free of charge on the InnoAgora powered by HDB interface platform, through the email address: www.innoagora.gr .

More about the Innovation Guarantee Fund here.