“cheap” loans from 3,000 to 25,000 euros will be able to receive from today, Monday, January 27, many small businesses.
Dimitris Christoulias writes
In detail, low-interest loans of 80 million euros will be available from 27 January 2025 to small businesses with up to 10 employees through the new Microcredit Fund, which is financed by the European Social Fund and the “Competitiveness” program 2021-2027.
With the support of the Microcredit Fund, from the operation of which it is predicted that 3,300 enterprises will be strengthened, of which 1,000 enterprises in the context of female entrepreneurshipwill grant the Microfinance Institutions working capital loans and loans for the implementation of investment projects, amounting to 3,000 – 25,000 euros and lasts 12-96 months, with the possibility of a grace period of up to 6 months. For granting loans no security will be taken.
60% interest free financing
The Fund will provide interest-free financing at a rate of 60% for general entrepreneurship or 75% for women’s entrepreneurshipwhile the remaining 40% or 25% will be provided by microfinance institutions respectively.
It is worth noting that the new Fund provided for the first time by the Hellenic Development Bank, supports – with an increased subsidy – the financing of women’s entrepreneurship, especially in cases of corporate forms where the shareholder-partner of more than 50% is a woman and the management representation of the business is performed by a woman. The crucial provision of funding for business education and mentoring consultancy services of up to 900 euros is also highlighted.
“Breath” of liquidity
The aim is to support many small businesseswho do not have access to banks obtain a small liquidity to have working capital or the required liquidity to implement a small investment program. After all, one of the “thorns” for many small businesses is access to financing and, in general, liquidity.
Objective of the “Microcredit Fund”is improving access to finance for very small businesses, which do not have access to bank loans, by granting shared risk loans, i.e. loans of up to 25,000 euros without real collateral, for small investment projects and working capital in related to their needs.
The loans will be financed with 60% or 75%, depending on the General or Women’s Entrepreneurship sub-programme from the Fund’s resources interest-free, and with 40% or 25% respectively, from the financial institution at an interest rate to be determined.
How will applications be made?
Applications to receive loans micro businesses and freelancers will be made to the banks and it is estimated that if the conditions are met, the disbursements will be made within a short period of time. It is noted that in similar programs that have “run” in the past, the funds have been allocated in less than 3 months.