The Business Growth Fund is a new Fund that is expected to be established by the Hellenic Development Bank with the aim of providing financial support to small and medium enterprises in Greece. The creation of the Fund focuses on the recovery and development of businesses after the ten-year financial crisis and the coronavirus pandemic.
The Fund with the name Business Growth Fund has a total budget of 840 million euros, which will be distributed, in the first phase, through 3 programs.
What are the 3 programs of the Business Growth Fund
- Green Co-financed Loans or Green Co-financing Loans. The purpose of the financing tool is to cover the lack of financing for investments in Green Transition projects, e.g. energy efficiency, electrification and energy production through renewable energy sources. The investment loans that will be given to businesses are co-financed and have favorable terms. Through the Green Co-financing Loans, pollutant emissions are expected to be significantly reduced and the foundations for environmental protection will be laid.
- Digital Upgrade Loans or Digitalization Co-Financing Loans. The specific loans aim at the digitization of activities and, in general, at the digital upgrading of businesses. They are of an investment nature, co-financed and set favorable conditions for businesses, while the ultimate goal is to increase the productivity of businesses and create new jobs.
- Business Liquidity Loans or Liquidity Co-Financing Loans. These are co-financed working capital loans in order to deal with the increased fixed costs of businesses due to the energy crisis, inflation, the increase in the prices of raw materials and in general the effects of the pandemic.
Who are they addressed to? programs of the Business Growth Fund
It is emphasized that through the 3 financial programs of the Business Growth Fund, a total of 840 million euros is expected to be allocated to small and medium enterprises.
The new Fund of the Hellenic Development Bank, with the name Business Growth Fund, is financed by the PDE Public Investment Program, from the no. 92.378/22.06.2021 Financing Agreement between the European Investment Bank (EIB) and the Hellenic Republic, as represented by the Ministers of Finance and Development and Investments.
The programs of the Business Growth Fund are exclusively addressed to companies that have not previously received a subsidy from the Hellenic Development Bank.
