New Financing Instrument for Research and Innovation Launched by the Hellenic Development Bank (HDB).
For the first time, businesses benefiting from the program may receive a rebate of up to 20% of the loan amount, subject to the achievement of innovation and ESG criteria.
The first Innovation Guarantee Fund is launched today by the Hellenic Development Bank (HDB), aiming to enhance the competitiveness of businesses engaged in research and innovation.
Through this pioneering financing program, made available via partner banks, HDB introduces to the market a hybrid financial product that combines loan guarantees with a grant of up to 20% of the loan principal. The grant is conditional upon the achievement of innovation and ESG (Environmental, Social, and Governance) criteria, thereby providing tangible support to innovative entrepreneurship. The receipt of the grant correspondingly reduces the outstanding loan balance.
The guarantee provided by the Hellenic Development Bank (HDB) covers 80% of the loan amount, significantly reducing the credit risk for participating banks. This guarantee translates into improved financing terms for businesses, including more favorable interest rates and reduced collateral requirements. For the first time in an HDB financing program, the achievement of innovation and ESG criteria is directly linked to a reduction of the outstanding loan balance, offering a meaningful incentive—particularly for new entrepreneurs who choose to invest in innovation.
Strong interest has been expressed by credit institutions in participating in the Innovation Guarantee Fund.
Specifically, nine banks are offering financing under the Fund, benefiting from the guarantee and the grant-related terms. These banks are Piraeus Bank, Alpha Bank, Eurobank, Attica Bank, Pancretan Bank, Optima Bank, Cooperative Bank of Chania, Cooperative Bank of Thessaly, and Cooperative Bank of Epirus.
Through the Fund, total financing of up to €140 million is available. Each eligible business may apply for a bank loan ranging from €25,000 to €400,000, to cover financing needs related to investment plans and working capital, including eligible operating expenses associated with research and innovation.
The loan tenor extends up to 10 years and may include a grace period ranging from one to three years.
Under the terms of the Fund, banks do not require collateral for loans of up to €50,000, while for higher loan amounts, in rem collateral is capped at 20% of the loan value. In all cases, the prenotation of a borrower’s primary and sole residence is strictly prohibited.
Eligible beneficiaries include newly established and existing very small, small, and medium-sized enterprises (SMEs) of any legal form, demonstrating an innovative profile based on a business plan. Indicative eligibility criteria include registration in the Elevate Greece registry, the proportion of expenditure on research and innovation relative to total operating expenses, any research and innovation awards received, the registration of intellectual or technological property rights, among others.
Through the Innovation Guarantee Fund, a culture of reward is promoted for SMEs that adopt best practices, such as investing in research and innovation, reducing energy consumption, increasing the participation of women in leadership positions, investing in staff training, implementing customer satisfaction measurement policies and methodologies, establishing data security policies, and other responsible business practices.
The Minister of Development and Investments, Mr. Adonis Georgiadis, emphasized:
“The Hellenic Development Bank demonstrates in practice that it keeps pace with developments and pioneer’s new hybrid financing products, a first for the Greek market. This new program will enable Greek businesses to understand and integrate ESG sustainability criteria, which have now become fundamental benchmarks for investors.”
The Deputy Minister of Development and Investments, Mr. Giannis Tsakiris, highlighted:
“Today, the Hellenic Development Bank serves as a model in the creation of financing tools aligned with sustainable development criteria. We continue to uphold the Economy-Society-Environment triad as pioneers of transformative initiatives, which play a decisive role in addressing climate change.”
The Chairwoman and CEO of the Hellenic Development Bank (HDB), Ms. Athina Chatzipetrou, stated:
“At HDB, we demonstrate our commitment to supporting those who dare, innovate, and undertake business initiatives. For the first time, innovation is supported through a hybrid financing tool that combines rewards with achievement criteria, aimed at enhancing business sustainability. The integration of ESG criteria will remain a central focus in the design of future programs to support healthy entrepreneurship.”
Pantelis Tzortzakis, Executive Vice President of the Hellenic Development Bank (HDB), stated:
“Supporting innovation is a strategic goal of the Hellenic Development Bank, and this financial instrument fills a gap in the market while mitigating the risk for those who innovate. Combined with the international connectivity platform InnoAgora, which we have recently developed, and which is offered free of charge to every Greek business, this is the most favorable combination for us to win the bet of outward-looking growth and competitiveness.”
Application Submission Process:
The expression of interest from the company is submitted through the State Aid Information System (PSKE), at the electronic address www.ependyseis.gr, by indicating the bank with which they wish to collaborate for financing. At the same time, the company may register free of charge on the InnoAgora connectivity platform powered by HDB via the electronic address www.innoagora.gr.
Watch the video here.
