OCDE - Financing SMEs and Entrepreneurs 2026 - Grecia de 2026

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FINANCING SMES AND ENTREPRENEURS 2026: GREECE © OECD 2026

Key facts on SME financing In 2023 and 2024, the Greek economy maintained its positive momentum, solidifyi ng the recovery that began in the aftermath of the COVID-19 pandemic. Real GDP increased by 2.3% in 202 4, supported by private consumption, investment co-financed through the Recovery and Resilience Facility (RRF), and strong performance in exports and tourism. This macroeconomic context contributed to favourable conditions for business activity across various sectors, reinforcing investor confidence and market dynamism. This economic upturn coincided with renewed business lending activity. In 2024, total new business lending reached EUR 23.97 billion, the highest since the pandemic. SME lending rose to EUR 5.94 billion, up 25.15% from 2023. However, this increase was lower than that for larger firms, res ulting in an SME share of 24.8% in total new loans , higher than in 2022 (20.5%) but still below 2021 (28.4%). This reflects the uneven pace of credit recovery among different enterprise sizes, with small bu sinesses still facing notable hurdles in accessing finance. Despite higher loan flows, total outstanding business credit remained below pre-pande mic levels. At the end of 2024, it stood at EUR 74.3 billion. This reflects banks’ cautious lendi ng practices and still -modest demand from smaller firms. Lending institutions remained prudent, assessing credi t risk more conservatively and prioritising clients with stronger balance sheets or stable cas h flow histories. Microenterprises, in particular, often refrained from borrowing due to high interest costs an d uncertain business conditions. Non-performing loans (NPLs) for SMEs dropped to 3.98% in 2024, from 7.65% in 2023 and over 40% since 2015, signifying an improvement in the quality of SME loans. The “Hercules” asset protection

business conditions. Non-performing loans (NPLs) for SMEs dropped to 3.98% in 2024, from 7.65% in 2023 and over 40% since 2015, signifying an improvement in the quality of SME loans. The “Hercules” asset protection schemes played a key role in this clean-up. These initiatives allowed banks to securitise and offload problematic exposures, thus freeing up capital and improving financial system resilience. Overall, business NPLs also declined, supporting the stability of the banking sector and enabling more targeted lending. Meanwhile, interest rates remained high and well above historical norms. The average rate for SME loans fell slightly to 5.7% in 2024, from 5.96% in 2023, while large firms borrowed at 5.44%. The spread between the two remained below 1 percentage point for a second year, but financing costs were stil l well above historical norms. Tight monetary policy from the European Central Bank, in res ponse to inflationary pressures, contributed to persistently elevated borrowing costs. These conditions continued to restrict th e affordability of credit, particularly for firms in sectors with lower profit margins. According to the ECB SAFE survey, SME access to finance improved modestly. Only 9.86% of SMEs were asked to provide collateral in 2024, down from 22.56% in 2023. The loan rejection rate fell to 15.79%, from 19.24% the previous year. Still, challenges persisted , especially for micro and young firms , due to procedural complexity and limited negotiation power. Some SMEs reported difficulty nav igating the application process, while others lacked the documentation or financial statements ty pically required by lenders. Greece2 

FINANCING SMES AND ENTREPRENEURS 2026: GREECE © OECD 2026

Public support continued to play a vital role. Government guarantees for SME loan s reached EUR 4.16 billion in 2024, focusing on small enterprises and investments in digitalisation and green transition. These

FINANCING SMES AND ENTREPRENEURS 2026: GREECE © OECD 2026

Public support continued to play a vital role. Government guarantees for SME loan s reached EUR 4.16 billion in 2024, focusing on small enterprises and investments in digitalisation and green transition. These guarantees, often co-financed by the RRF, reduced credit risk and improved access . Concurrently, programs administered by the Hellenic Development Bank targeted key priority areas such as energy efficiency, digital upgrades, and regional entrepreneurship. The evolution from emergenc y COVID-19 support to more structured investment incentives marked a shift in national SME finance policy. Alternative finance sources gained limited but notable ground. Venture capital investment rose to EUR 555 million (+21.98% from 2023). Factoring volumes reached EUR 3.716 billion, up from EUR 3.225 billion, while leasing and hire purchase activity hit EUR 2.744 billion. However, non-ba nk finance remains underdeveloped in Greece compared to EU averages. The market for equity-based and hybrid instruments is relatively small, and awareness among SMEs of available alternatives remains low. Encouraging broader diversification of funding sources remains a long-term policy goal. In the post-pandemic period, Greek authorities continued to support SMEs through a combination of national tools and EU-backed financial instruments. The RRF played a key r ole in boosting liquidity and offering guarantees to SMEs, particularly in areas such as green transition, digital isation, and innovation. Through partnerships with the Hellenic Development Bank and the European Investment Fund (EIF), public guarantee schemes were reinforced and adapted to the needs of micro and small enterprises. Regulatory reforms were also introduced to simplify credit access and reduce admin istrative burdens, though SMEs continue to face barriers such as high collateral requirements and increased borrowing costs. 3

FINANCING SMES AND ENTREPRENEURS 2026: GREECE © OECD 2026

Table 1. Scoreboard for Greece

Source: See Table 3.

though SMEs continue to face barriers such as high collateral requirements and increased borrowing costs. 3

FINANCING SMES AND ENTREPRENEURS 2026: GREECE © OECD 2026

Table 1. Scoreboard for Greece

Source: See Table 3.

Indicator Unit 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Debt Outstanding business loans, SMEs EUR billion

44.9 41.6 39.1 48.1 48.1 46.9 48.4 44.7 41.1 35.2 32.0 25.5 Outstanding business loans, total EUR billion 102 124 124 117 113 101 97 95 89 88 82 76.4 67.3 66.6 57.9 64 67.43 74.3 Share of SME outstanding loans % of total outstanding business loans

38.5 36.8 38.8 49.7 50.6 52.6 55.3 54.4 53.8 52.3 48.1 43.99 New business lending, total EUR billion

36.5 36.3 20.7 29.4 21.8 24.3 14.9 6.9 5.8 7.3 11.4 7.9 16.2 11.85 22.19 16.95 23.97 New business lending, SMEs EUR billion

12.5 13.0 4.4 5.2 4.1 3.7 2.3 3.2 2.8 3.1 3.3 3.2 6.0 3.4 4.54 4.75 5.94

Share of new SME lending % of total new lending

34.2 35.6 21.4 17.8 18.9 15.0 15.6 17.0 18.4 15.5 10.18 16.05 31.8 28.39 20.46 28.01 24.79 Outstanding short-term loans, SMEs EUR billion

18.1 17.6 18.8 17.0 15.1 13.4 9.5 6.93 Outstanding long-term loans, SMEs EUR billion

30.1 29.3 29.6 27.7 25.9 21.7 22.5 18.56 Share of short-term SME lending % of total SME lending

37.6 37.6 38.9 38.0 58.4 61.6 42.3 37.37 Government loan guarantees, SMEs EUR billion

0.37 0.31 0.24 0.56 1.08 1.2 1.3 3.9 3.97 4.05 4.23 4.16 Non-performing loans, total % of all business loans 4.60 4.30 6.70 8.70 14.2 23.4 31.8 29.4 31.0 30.3 30.5 28.6 25.5 19.1 8.8 5.63 4.27 1.91 Non-performing loans, SMEs % of all SME loans

41.2 44.1 43.2 42.5 38.1 36.1 28.5 16.4 9.18 7.65 .3.98

Non-performing loans, SMEs % of all SME loans

41.2 44.1 43.2 42.5 38.1 36.1 28.5 16.4 9.18 7.65 .3.98 Interest rate, SMEs % 6.57 6.82 4.62 5.53 6.77 6.87 6.51 5.80 5.38 5.32 4.91 4.66 4.31 3.9 3.79 4.28 5.96 5.7 Interest rate, large firms % 5.32 5.71 3.52 4.27 5.74 5.92 5.77 5.55 4.82 4.61 4.20 3.81 3.64 2.8 2.7 3.23 5.76 5.44 Interest rate spread Percentage points 1.25 1.11 1.10 1.26 1.03 0.95 0.74 0.25 0.56 0.71 0.71 0.85 0.67 1.1 1.09 1.05 0.2 0.26 Collateral, SMEs % of SMEs needing collateral to obtain bank lending

51.4 40.5 49.4 46.7 45.9 46.2 49.2 39.8 25.7 20.7 18.5 18.4 13.72 28.5 22.56 9.86 Percentage of SME loan applications SME loan applications/ total number of SMEs

37.9 39.6 30.8 29.9 21.4 25.5 18.8 21.5 17.5 23.0 23.9 31.3 21.93 23.23 14.15 24.15

Rejection rate 1- (SME loans authorised/ requested)

25.8 24.5 33.8 28.3 26.0 21.5 19.9 18.2 16.2 20.5 11.4 12.3 10.35 14.96 19.24 15.79 Non-bank finance Venture and growth capital EUR million 19.0 32.7 16.7 25.0 10.1

4.8 12.6 36.8 38.0 44.5 84.1 147.1 150 500 325 455 555 Venture and growth capital (growth rate) %, Year-on-year growth rate

72 -49 50 -60

160 193 3 17 88.8 74.87 1.99 233.3 -35 5.32 21.98 Leasing and hire purchases EUR billion 7.28 7.87 7.50 7.28 6.85 6.22 3.36 4.08 4.72 4.40 4.25 3.96 3.39 3.32 2.52 2.69 2.63 2.74 Factoring and invoice discounting EUR billion 1.28 1.73 1.77 1.73 1.49 1.53 1.41 1.69 1.69 1.72 1.74 1.93 1.96 1.89 2.37 2.98 3.22 3.71 Other indicators Payment delays, B2B Number of days

25 34 30 35 40 43 41 36 47 47. 33 17

50 36 32 Bankruptcies, SMEs Number 513 359 355 355 445 415 392 330 189 108 123 114 63 57 53 23 13 23

50 36 32 Bankruptcies, SMEs Number 513 359 355 355 445 415 392 330 189 108 123 114 63 57 53 23 13 23 Bankruptcies, SMEs (growth rate) %, Year-on-year growth rate

-30 -1 0 25 -7 -6 -16 -43 -43 14 -7 -23.17 -9.52 -7.02 -56.6 -43.48 +76.924 

FINANCING SMES AND ENTREPRENEURS 2026: GREECE © OECD 2026

Macroeconomic and financing conditions The financial crisis and the ensuing sovereign debt crisis had a profound i mpact on the Greek economy, from which it has not fully recovered yet. Real GDP contracted by 26% between 2008 and 2015. In 2018 GDP expanded by 1.9%, the fastest GDP growth rate since the onset of the crisis and grew for three consecutive years. During 2020 and 2021, economic activity declined significantly due to the pandemic and measures to reduce it. Real GDP shrank by 9% in 2020, mainly due to declini ng service exports and private consumption. According to Eurostat data, in 2022 real GDP increased by 5.7% after a rebound of 8.7% in 2021. The dynamic recovery was a result of higher domestic demand both in consumption and investment activity, the recovery of the tourism sector, and the National Recovery and Resilience Pl an. In 2023, the Greek economy expanded by 2.0%, outperforming the euro area average. In 2024, real GDP grew by 2.3%, according to the latest data from Eurostat. Growth was primarily supported by private consumption, tourism, and investment co-financed through the Recovery and Resilience F acility (RRF). However, several downside risks persisted, including the broader economic slowdown in t he euro area, the European Central Bank’s tight monetary policy stance, geopolitical tensions such as the war in Ukraine,

consumption, tourism, and investment co-financed through the Recovery and Resilience F acility (RRF). However, several downside risks persisted, including the broader economic slowdown in t he euro area, the European Central Bank’s tight monetary policy stance, geopolitical tensions such as the war in Ukraine, and the impact of elevated energy prices on household purchasing power. Despite thes e headwinds, the Greek economy continued on a positive trajectory for a second consecutive year. SMEs in the national economy In 2024, 818,747 enterprises are defined as SMEs, comprising 99.9% of all Greek enterprises, according to estimates from the European Commission. 94.5% of Greek businesses (774,137) are micro-enterprises employing less than 10 employees, 4.9% (40,158) are small enterprises, 0.5% (4,452) are medium-sized enterprises, and 0.1% (570) are large enterprises. Accordingly, 46.8% of the workforce is employed by micro-enterprises, while 84.7% of the workforce is employed by SMEs. Micro -enterprises and SMEs account for 24.8% and 62.8% of the value added in the economy, respectively. Comp ared to the EU-27 average, SMEs and especially micro-enterprises are more numerous and more important in terms of employment for the Greek economy (see Table 2) 1. Table 2. Contribution of firms in Greece by size, 2025 % Share Number of enterprises Number of employees Value added Greece EU-28 Greece EU-28 Greece EU-28 Micro 94.4 % 93.6 % 46.8 % 30..1 % 24.8 % 20.1 % Small 4.9 % 5.4 % 24.0 % 19.5 % 19.2 % 16.6 % Medium 0.5 % 0.8 % 13.8 % 15.5 % 18.9 % 16.9 %

Small 4.9 % 5.4 % 24.0 % 19.5 % 19.2 % 16.6 % Medium 0.5 % 0.8 % 13.8 % 15.5 % 18.9 % 16.9 % SMEs 99.9 % 99.8 % 84.7 % 65.1 % 62.8 % 53.6 % Large 0.1 % 0.2 % 15.3 % 34.9 % 37.2 % 46.4 % Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %

Source: European Commission’s SBA Fact Sheet 2025.

SME lending SME lending in Greece continued to grow steadily during 2023 and 2024, marking a gradual consolidation of the post-pandemic credit recovery. Notwithstanding the deployment of targeted support mechanisms by 5

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the Hellenic Development Bank, access to finance , particularly for micro-enterprises, remained markedly constrained due to elevated collateral requirements and persistently high loan rejection rates. Business lending conditions in Greece improved during 2023 and 2024, reflecting stronger credit provision to firms and SMEs. According to the Bank of Greece, developments in new ba nk loans to NFCs in 2023 mainly reflect a slowdown in credit to large firms. The average monthly gross fl ow of loans (with a fixed maturity) to large firms declined to EUR 1 billion in 2023, corresponding to two-thirds of the 2022 flow (EUR 1.5 billion). By contrast, the respective flow to SMEs (EUR 396 million) increased slightly year-on-year, by 4.6%. According to Bank of Greece data, the share of new SME lending in total new business lending declined from 34.2% in 2008 to 24.8% in 2024. This decline remains relevant given the central role of

4.6%. According to Bank of Greece data, the share of new SME lending in total new business lending declined from 34.2% in 2008 to 24.8% in 2024. This decline remains relevant given the central role of SMEs in the Greek economy. Taken as a whole, credit developments for SMEs during 2023 –2024 point to a gradual normalisation of financial conditions. Nevertheless, key challenges remain, including elevated bo rrowing costs, persistent structural risk aversion among financial institutions, and uneven access to finan ce based on firm size or geographic location , factors which highlight the continued need for well-calibrated and targeted public policy interventions. Credit conditions Following the tightening of the ECB’s monetary policy, borrowing costs for both SMEs and large firms increased in 2022, reversing the downward trend observed over the previous nine years. In 2023, the weighted average interest rate on loans to SMEs rose to 5.8%, while the corresponding rate for large firms stood at approximately 5.0%, implying an interest rate spread of around 0.8 percentage points between SMEs and large enterprises, In 2024, bank lending rates for small and medium-sized enterprises (SMEs) remained almost unchanged in average annual terms, standing at slightly higher levels than the average for tot al non-financial corporations (NFCs), reflecting increased risk management requirements. In 2024, the weighted average interest rate stood at 5.9% on loans of up to EUR 250 000 and at 5.3% on loans of over EUR 1 million. At the same time, the interest rates charged by credit institutions on loans to SMEs, whi ch represented 25% of the gross flow of business loans with an agreed maturity in 2024, remained slightly higher than the weighted average interest rate for all businesses. Specifically, the weighted average interest rate for SMEs stood on average at 5.8% on loans with an agreed maturity and at 6.7% on loans without agreed maturity, remaining almost unchanged compared with the 2023 average.

weighted average interest rate for all businesses. Specifically, the weighted average interest rate for SMEs stood on average at 5.8% on loans with an agreed maturity and at 6.7% on loans without agreed maturity, remaining almost unchanged compared with the 2023 average. According to the ECB’s Survey on the Access to Finance of Enterprises (European Central Bank, 2025[1])), access to bank lending improved marginally across selected indicators. However , structural barriers to finance persisted. Credit conditions remained markedly uneven, with access v arying substantially depending on firm size, geographic location, and sectoral affiliation. Micro-enterpr ises and newly established firms continued to face considerable constraints due to stringent colla teral requirements and conservative risk assessments by financial institutions. In parallel, the availability and uptake of alternative financing instruments remained limited, highlighting persistent gaps in the broader S ME finance ecosystem. Alternative sources of SME financing In 2024, alternative forms of business financing in Greece recorded a notable increas e across all major categories, including venture capital, leasing, and factoring. Venture and growth capital investments amounted to EUR 555 million in 2024, reflecting a 22% increase compared to EUR 455 million in 2023. This rebound follows the slowdown tha t occurred after the6 

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completion of the first EquiFund cycle in 2022, and it signals the r einvigoration of the Greek VC market. The growth was driven by new fund activations, renewed interest from international investors, and the gradual maturity of the local innovation ecosystem. In the leasing sector, total financing rose from EUR 2.64 billion in 2023 to EUR 2.74 billion in 2024, marking a modest 4% increase. This steady growth confirms the continued relevance of leasing as a financing tool for acquiring equipment, vehicles, and fixed assets, particularly in sectors with capital-intensive operations. Factoring and invoice discounting recorded even stronger growth, increasing from EUR 3.22 billion in 2023

a modest 4% increase. This steady growth confirms the continued relevance of leasing as a financing tool for acquiring equipment, vehicles, and fixed assets, particularly in sectors with capital-intensive operations. Factoring and invoice discounting recorded even stronger growth, increasing from EUR 3.22 billion in 2023 to EUR 3.72 billion in 2024, a 15.3% year-on-year rise. The consistent expansion of factoring underscores its importance as a source of liquidity, especially for SMEs operating in markets with l ong payment cycles or significant export activity. The overall picture for 2024 indicates that Greek businesses are increasingly turni ng to alternative and complementary financing tools, beyond traditional bank lending. The concurrent rise in venture capital, leasing, and factoring points to a broader, more diversified financing environment and gr owing investor confidence in the Greek business landscape. Other indicators In 2022, bankruptcies declined significantly, by 56.6%, reaching a total of 23 cases . The same downward trend continued in 2023, with 13 bankruptcies recorded, representing a further 43.48% decrease compared to 2022. The total number of business bankruptcies in 2024 recorded an increase of 76.9% compared with 2023 (23 bankruptcies in 2024, against 13 in 2023). SME-specific data on NPLs have been available since 2014, when 41.2% of loans to SMEs were classified as NPLs, increasing to 44.1% in 2015, but diminished to 43.2% in 2016. The percentage of SME nonperforming loans related to all SME loans was 28.5% in 2020 and has declined fo r the fifth year in a row since 2016, when it reached 43.2%. Such decline is explained by a significant removal of NPLs from Greek banks’ balance sheets (from 36.1% of total loans in 2019 to 28.5% of total loans in 2020) through the

since 2016, when it reached 43.2%. Such decline is explained by a significant removal of NPLs from Greek banks’ balance sheets (from 36.1% of total loans in 2019 to 28.5% of total loans in 2020) through the introduction in late 2019 of the “Hercules” asset -protection scheme. The scheme, which was extended in mid-2021, to be accessible until April 2022, enabled the sale of NPLs to a private securitisation vehicle that could subsequently sell more senior securities backed by these assets and g uaranteed by the state . As a result, in 2022, only 5.63% of all business loans were non-performing, while the SMEs’ share of NPLs continued to drop and reached 9.18% This downward trend continued during the yea rs 2023–2024, with rates of 7.65% and 3.98% respectively. In 2023, B2B terms of payment days decreased by 4 days, reaching 32 days compared to 36 days in 2022, indicating a tightening liquidity conditions. In 2024, B2B payment terms in Gree ce remained among the strictest in Western Europe at 32 days, while liquidity pressures and deteriorating B2B payment behaviour continued to affect business financial stability. Government policy response Direct loans In 2019 and according to Law 4608/2019, the Greek Government established the Hellenic Development Bank (HDB), which took place through the transformation and administrative capaci ty building of two existing entities, the Hellenic Fund for Entrepreneurship and Development S.A. (ETE AN S.A.) and its subsidiary, the New Economy Development Fund S.A. (TANEO SA). HDB’s scope i s to improve SMEs’ access to finance, foster innovation, facilitate investments in infrastructure, encourage equity investm ents and other alternative financing sources and provide business support to SMEs, mainly through shared-risk 7

subsidiary, the New Economy Development Fund S.A. (TANEO SA). HDB’s scope i s to improve SMEs’ access to finance, foster innovation, facilitate investments in infrastructure, encourage equity investm ents and other alternative financing sources and provide business support to SMEs, mainly through shared-risk 7

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loans and guarantee facilities, as well as financial expertise to the public sector. Since its establishment in 2019, HDB S.A. has deployed new financial instruments programmes by using both publ ic and private funds for the support of SMEs. The Greek government has established several funds to improve SMEs’ access to finance, combining the national budget, the private sector, and the ERDF’s funds. Entrepreneurship Fund III – Loan Fund The Entrepreneurship Fund III - Loan Fund2 was established under the Entrepreneurship Fund III, with the aim of providing investment loans and special-purpose working capital loans to Small and Medium-Sized Enterprises (SMEs) under particularly favourable terms. The objective of the Fund is to improve access to finance for the entire SME sector in order to support and develop their business ac tivity and cover a wide range of financing needs. Furthermore, the programme aims to enhance the productive capacity of enterprises, improve operational processes and the quality of products and services, and ultimately strengthen their competitiveness and positioning in international markets. The Fu nd has a total budget of EUR 200 million financed by the Competitiveness Programme 2021–2027 and co-funded by the European Union. Including the 60% participation of Credit Institutions in each loan, the total loan portfolio amounts to approximately EUR 450, million. Loan amounts under the Entrepreneurship Fund III – Loan Fund vary according to the nature of the financing product and the applicable regulatory framework. The structure of the programme is divided into two main sub-programmes, each addressing different busines s needs through targeted financial support mechanisms: • Sub-programme 1 – Investment Loans

according to the nature of the financing product and the applicable regulatory framework. The structure of the programme is divided into two main sub-programmes, each addressing different busines s needs through targeted financial support mechanisms: • Sub-programme 1 – Investment Loans Action 1.1: Investment loans ranging from EUR 20,000 to EUR 1.5 million, includi ng: 40% interest-free public co-financing, and partial interest rate subsidy of 3% for t wo years on the remaining 60%, under the De Minimis Aid Scheme (Regulation (EU) 2831/2023). Action 1.2: Investment loans ranging from EUR 20,000 to EUR 8 million, including: 40% interest-free public co-financing, and partial interest rate subsidy of 3% for t wo years on the remaining 60%, under the General Block Exemption Regulation (GBER) – Article 21. • Sub-programme 2 – Working Capital Loans Action 2.1: Working capital loans ranging from EUR 10 000 to EUR 500 000, including: 40% interest-free public co-financing, and partial interest rate subsidy of 3% for t wo years on the remaining 60%, under the De Minimis Aid Scheme (Regulation (EU) 2831/2023). It is important to note that eligibility for the interest rate subsidy under all actions is strictly limited to enterprises that have not previously received business loans through any of the financing programmes operated by the Hellenic Development Bank (HDB). Entrepreneurship Fund III – Guarantee Facility The Entrepreneurship Fund III – Guarantee Facility3 is a financial instrument established under the portfolio fund “Entrepreneurship Fund III”, co -financed by the Competitiveness Programme of the NSRF 2021 –

2027. The funds derive from both the European Regional Development Fund (ERDF) and na tional resources. The creation of this new portfolio fund represents an important step towards strengthening and supporting existing and newly established SMEs in Greece. The Hellenic Development Bank (HDB) has

2027. The funds derive from both the European Regional Development Fund (ERDF) and na tional resources. The creation of this new portfolio fund represents an important step towards strengthening and supporting existing and newly established SMEs in Greece. The Hellenic Development Bank (HDB) has been appointed as the manager of the Portfolio Fund. The purpose of the Guarantee Facility is to support SME financing through guaranteed loans intended for investments, as well as working capital loans, including revolving credit lines. In particular, the guarantee facility covers the following categories of loans: • Investment loans, • Working capital loans,8 

FINANCING SMES AND ENTREPRENEURS 2026: GREECE © OECD 2026

• Revolving working capital credit lines.

Additionally, the facility offers an interest rate subsidy: • 2% for enterprises located in Attica and the South Aegean, • 3% for enterprises in all other regions of the country valid for the first two (2) years of financi ng. Loans are provided without any guarantee commission fees, thereby substantially reducing the borrowing costs for SMEs. The initial budget of the Guarantee Facility under the Entrepreneurship Fund III is set at EUR 300 million, distributed across two sub-funds as follows: • “General Entrepreneurship” Sub -Fund: EUR 230 million, which through leverage is expected to generate a loan portfolio of EUR 1.642 billion. • “Start-Up Entrepreneurship” Sub -Fund: EUR 30 million, expected to leverage EUR 150 million in guaranteed loans. An additional EUR 40 million is allocated specifically for interest rate s ubsidies. In total, the Guarantee Facility is expected to generate EUR 1.792 billion in financing through leverage mecha nisms. The financing conditions vary depending on the category of loan and the appl icable aid framework under EU Regulation 651/2014. In the case of the General Entrepreneurship sub-fund, the maximum loan amount for investment purposes may reach EUR 10 million under Article 21(3), or EUR 1.6 million under the De

The financing conditions vary depending on the category of loan and the appl icable aid framework under EU Regulation 651/2014. In the case of the General Entrepreneurship sub-fund, the maximum loan amount for investment purposes may reach EUR 10 million under Article 21(3), or EUR 1.6 million under the De Minimis regime set forth in Article 21(18). The Entrepreneurship Fund III – Guarantee Facility aims to support SMEs by combining public and private capital to promote business growth, inv estment, and resilience. Through attractive financing conditions and risk-sharing mechanisms , the facility contributes to national and regional development, supports entrepreneurship, and enhances the overall competitiveness of the Greek economy. Microfinance Fund – Entrepreneurship Fund III The TEPIX III Microfinance Fund 4 is a financial instrument launched under the Entrepreneurship Fund III portfolio, co-financed by the European Social Fund Plus (ESF+) through t he Operational Programme “Competitiveness” of NSRF 2021– 2027. The Hellenic Development Bank (HDB) acts as the managing authority of the Portfolio Fund. This Microfinance Fund operates as a risk-sharing financial tool, offering: • Investment loans, covering up to 40% of the total loan amount, and • Working capital loans with the goal of enhancing access to finance for very small enterprises and self-employed individuals who are typically excluded from conventional banking services. It places particular emphasis on: • Women entrepreneurs, and • Other categories of businesses eligible under Article 15(2) of Law 4701/2020 (Offici al Gazette A’ 128/30.06.2020). A significant feature of the programme is the provision of free mentoring and advis ory services in entrepreneurship and business management to all microloan beneficiaries. Eligibility for financing under the Microfinance Fund is determined according to clearly defined criteria, which vary depending on the specific sub-programme. The scheme distinguishes between two distinct eligibility streams: one targeting general entrepreneurship, and another tailored speci fically to support women-led enterprise