The action “Interest rate Subsidy for Existing Small and Medium-sized Business Loans Affected by the COVID-19 Virus Pandemic Measures”, published in Government Gazette 1291B/10.4.2020, concerns the strengthening of businesses affected by the pandemic in the form of interest coverage for their business loans during a period of 3 months.
Recipients of the aid are the Small and Medium-sized Business, regardless of their legal form, operating legally in the country.
Conditions for business participation:
- To be active on 19/3/2020 in the eligible sectors of activity (Business Activity Code) mentioned in Annex V of the invitation.
- To be included in Small and Medium-sized Businesses (SMBs), as defined in Annex I to Commission Regulation (EU) No. 651/2014 of June 17, 2014 on the definition of micro, small and medium-sized businesses.
- There should be no reasons for exclusion of paragraph 1 of the article 40 of law 4488/2017 (violations of labor legislation).
- They should not be considered firms in difficulty on December 31, 2019 in accordance with the provisions of Annex IV of the invitation.
- If they operate in the processing and trading of agricultural products trading, they should commit not to pass on the aid received, in whole or in part, to primary producers and to the obligation that such aid cannot be determined on the basis of the price or the quantity of products purchased by the primary producers or placed on the market by the businesses concerned.
- They should not have a pending warrant for recovery of previous illegal and incompatible state aid, according to an EU or WEU decision.
- They should commit that they will employ on 31.12.2020 at least the same number of employees as the number of employees worked for on 19.03.2020. It is clarified that the suspension of employment contracts in the context of the measures to deal with the consequences of the COVID 19 pandemic does not exclude the participation of businesses.
- The total amount of public financing that each business can receive may not exceed 800,000 euros [including any other direct aid, according to the 19.3.2020/C(2020) 1863 notice of the European Commission].
- It is clarified that businesses that have been granted the possibility of suspending the payment of loan capital for the eligible period of time, may receive the present aid for the interest of the same period.
- Businesses engaged in primary agricultural production and in the fisheries and aquaculture sector are not eligible.
Eligible Costs:
1. The public financing covers the contractual interest as well as theproportional levy of law 128/75 of the loans of the eligible businesses, and, in particular, business regular maturity loans, bond loans and Credit Agreements (open mutual accounts). The above loans must have been up to date on 31.12.2019 (ie. not exceeding 90 days late with a reference point on 31/12/2019). It is emphasized that the clearance is judged by the reference point of the subsidized debt.
Interest on arrears and other expenses are not covered.
2. The relevant loan agreements must have been concluded, and the corresponding loans must have been (in whole or in part) granted, before 01.04.2020.
3. For the period from 01.04.2020 to 30.06.2020, the public financing covers the contractual interest of three (3) months due from the eligible businesses, according to the respective loan / credit agreements. Especially for Credit Agreements (with open mutual accounts), the interest for the debit balance is covered, according to the last -before or on 31.03.2020- temporary closure of the mutual account, as well as the interest resulting from the use of the existing credit limit (on 1.4.2020).
- Payments made after 01.04 2020 and concerning installments payable within April 2020 and before the approval of the application are covered by this Ministerial Decision. In this case the payment of the aid is considered to cover the particular period and the amounts already paid are offset against other debts of the recipient to the Financial Institution under the responsibility of the Institution.
Application procedure:
The application for financing is virtually submitted to the State Aid Information System (SAIS) at www.ependyseis.gr/mis with the indication: “INTEREST SUBSIDY FOR SMBs WITH EXISTING LOANS AFFECTED BY COVID 19”.
An application for financing is submitted per Financial Institution, which concerns all of its eligible liabilities to it.
When submitting the Application for Financing, the recipient of the aid is obliged:
- To fill in all the necessary details of the business on the SAIS.
- To attach the supporting documents provided on the SAIS.
- To have the application finalized so that it is available for processing in the next stage.
