Good practice:

Guarantee Action of Entrepreneurship Fund (TEPIX)

Entrepreneurship Fund (TEPIX) was established in 2010 to support SMEs in their funding needs for Working Capital and/or Investment Loans by providing beneficial pricing terms. To achieve this, TEPIX aimed at investing in financial engineering instruments, such as loan guarantees and risk-sharing loans by choosing financial, or investment organisations using open call procedures. The Guarantee Action’s specific objective was the successful achievement of all Operational Programmes’ targets in improving the competitiveness of Greek SMEs, who were faced with the diminishing collateral values in the Greek market.
The number of total funds - both private and public - introduced in market was EUR 817 mil. These correspond to 7.917 both loan and guarantee financial instruments with favourable terms for a total of 7.088 benefited enterprises.
Main results:
• 1206 business loans were covered by an equal number of issued guarantees. In total the Holding Fund supported 7.913 business loans provided with favourable terms up to 31-1-2017.
• 1206 benefited enterprises (7.088 within the whole Holding Fund).
• EUR 121,9 million of guaranteed loans were introduced in the Greek market (EUR 813.0 million within the whole Holding Fund).

Stakeholders: ERDF, Ministry of Development-Competitiveness-Shipping, Managing Authority of the OP for Competitiveness, and Entrepreneurship, ETEAN SA (transformed in 2019 into the Hellenic Development Bank- HDB), Financial Institutions, SMEs

EUR 121,9 mil. of loans from private resources (banks) were covered by EUR 85,7 mil. of guarantees. The action provided for a guarantee capital of EUR 38,9 mil. (from OP and ROPs resources) to EUR 85,7 million of guarantees to 1206 business loans of a total size of EUR 121,9 mil.

This Action was one important financial support to the Greek SMEs during the 2010 economic crisis, contributing to cover establishment expenses, further growth/development investment projects and other liquidity needs. It supported them introduce innovative products, procedures and services, become more extroverted and enhance competitiveness. 817 mil. €. were introduced in the market (private and public funds) corresponding to 7.917 both loan and guarantee FIs and 7.088 enterprises benefited.

The main scope of the Action was to promote entrepreneurship, to facilitate business access to finance and boost investment during the Greek economic crisis period. In order to achieve this, two Fund categories (Fund Units) were established, which – in collaboration with the financial institutions that expressed their interest to participate in the action – provided funding for investment projects of the Greek SMEs as well as loan guarantees according to ROPs’ overall growth strategy. The guarantees were provided on a loan to loan basis, for financing activities for enterprise expansion, business development as well as the business establishment and start-up. The business plans could also be supported by other actions under the NSRF / Investment Law grant actions. The action overreached the qualitative and quantitative targets of the regional strategic planning under the 2007-2013 programming period.