The Ministries of Development, Competitiveness, Infrastructure, Transport and Networks, as well as Shipping-Aegean and Tourism, today published the details of the action of the NSRF for the Strengthening of Island Tourism Entrepreneurship, with a budget of 80 million euros, for financing on favorable terms through of ETEAN very small and small businesses in the islands.
The program foresees the provision of loans of between 10,000 and 30,000 euros for working capital and/or investment financing, with a four-year repayment period and a fixed interest rate of 2.8 %. Especially for companies based on islands with a population of less than 3,100 inhabitants, as well as for investments made on these islands by companies based anywhere in Greece, the interest rate will be zero.
The loans will cover up to 70% of the costs, while the remaining 30 % at least will be contributed by the company before the disbursement. The action is aimed at new, established and existing businesses of all legal forms from the sectors (indicatively): hotels, rooms for rent, catering businesses, tourist agencies and car rental offices, water sports and marine tourism businesses in general, other alternative tourism businesses, retail of food, tourist items, works of art, businesses processing and trading local products of tourist interest, shops of folk art items, etc. (Seehere the full list of eligible KAD).
It is noted that for working capital loans, the headquarters of the company must be located on an island, while for investment loans, companies can be headquartered anywhere in Greece, but the investment must be made on an island.
Eligible expenses are:
- Creation - configuration - renovation - restoration in buildings, facilities and surroundings
- Machinery and Equipment,
- Know-how Rights,
- Software,
- Certification of quality assurance systems,
- Display – Promotion,
- Operating costs (e.g. rents – not including finance leases –, payroll costs, third party fees, costs of raw materials and purchase of goods).
Emphasis will be placed on investments that contribute to upgrading the quality of the services offered. For example, renewal of equipment, configuration-upgrade of internal and external spaces, promotion of local products (e.g. "Greek breakfast"), networking for supplies and promotion, configuration of tourist reception areas to monitor production process (enhancement of tourist experience), creation of gas station sale of local products, environmental upgrading of building facilities, electrical appliances, etc.
The date on which the action was announced is set as the start date of eligibility of expenditure, i.e. 21 February 2013.
From May 31, interested businesses can contact the branches of the banks that responded to ETEAN's invitation, for information and to submit applications. These are the banks:
ETHNIKI TRAPEZA, NEA PROTON BANK, BANK OF PIRAEUS – ATE.PAGRETIA CO-OPERATIVE BANK, ATTICA BANK, PROBANK SA, CO-OPERATIVE BANK OF EVIA, CO-OPERATIVE BANK OF CHANIA
The call to businesses will be open until the action's budget is covered, i.e. until loans totaling EUR 80 million have been disbursed. However, the loans must have been disbursed by December 31, 2013.
The banks undertake the reception of the requests, the control of the eligibility of the businesses and the business plan and will address to ETEAN a "recommendation of cooperation with the business", regarding the creditworthiness and the ability of the business to repay the loan. Proposals will be approved or rejected by ETEAN. For those proposals that are approved, the banks will then undertake the process of signing the loan agreement, checking the supporting documents and formal conditions (tax and insurance awareness, availability of funds from the company covering at least 30 % of the business plan, receipt and control of the documents of expenses etc.) as well as the disbursement of the loan, the collection of the installments and the monitoring of the repayment. Both the signing of the loan agreements and the disbursement of the loans will take place no later than 30 days after ETEAN's approval.
Loans will be disbursed without administration costs for borrowers and without real estate or other collateral but with a personal guarantee from a third party in the 100% of the loan.
The action is part of EPAN II and the PEPs of Thessaly-Sterea-Epiros-Attica-Crete and the Aegean Islands and is financed by resources of the European Regional Development Fund of the European Union, within the framework of the NSRF. The Action is announced based on Regulation (EC) no. 1998/2006 of the Commission on the application of Articles 87 and 88 of the Treaty to de minimis aid.