Low-interest loans of 80 million euros will be available from January 27, 2025 to small businesses with up to 10 employees through the new Microfinance Fund, supported by the European Social Fund and the “Competitiveness” Program 2021-2027.
The relevant decision was signed by the Alternate Minister of National Economy and Finance Nikos Papathanasis, while the operational agreement was preceded by the Hellenic Development Bank-HDB, which undertakes the creation and management of the new financial tool, within the framework of the “Entrepreneurship Fund III (TEPIX III)”.
Support for 3,300 businesses – Conditions
The new Microfinance Fund is expected to support 3,300 businesses, of which 1,000 businesses in the context of women’s entrepreneurship, while the Microfinance Institutions will grant working capital loans as well as loans for the implementation of investment projects, amounting to 3,000-25,000 euros with a duration of 12-96 months, and the possibility of a grace period of up to 6 months. No collateral will be accepted for the granting of the loans.
The Fund will provide interest-free financing at a rate of 60% for general entrepreneurship or 75% for women’s entrepreneurship, while the remaining 40% or 25%, respectively, will be provided by the Microfinance Institutions.
