Low Cost Funding for Businesses - EIB Loans
AstroBank, fully incorporating a policy to support Cypriot Businesses and encourage Youth Employment, in partnership with the European Investment Bank (EIB) established a credit for the total amount of €20m. This credit is made available through AstroBank’s branch network for financing eligible small and medium sized businesses (SMEs) and small projects carried out by enterprises having less than 3.000 employees (MidCaps).
Ø A European Cooperation for the benefit of SMEs
The EIB is the long-term lending bank of the European Union; its task is to contribute towards the integration, balanced development and economic and social cohesion of the EU Member States. Thanks to its best possible rating on the capital markets (AAA), the EIB can borrow funds on favourable terms, which it passes on to SMEs and MidCaps through us. The SMEs and MidCaps are specifically and individually informed by us of the EIB’s involvement and its impact on the financial terms of the loan received. Extensive information related to the EIB Group support to SMEs and MidCaps can be found in the EIB website (www.eib.org).
Beneficial Interest Rates compared to standard business lending rates. Due to The EIB’s participation the Loan Interest Rate will be at least 0,50% lower than standard rates. Additionally, Final Beneficiaries that participate in the ‘Jobs for Youth’ Initiative1, will benefit from an additional 0,50% reduction on the interest rate, with a total benefit of at least 1%!
Ø Loan Characteristics
Amount: €50.000 - €3.000.0002
Total Interest Rate (indicative): from 2,40%3 (floating rate connected with Euribor 6m)
Tenor: 2 – 12 years4
Ø Eligible Beneficiaries
Any entity engaged in an economic activity located in Cyprus or in any other EU country, employing less than 3.000 employees (full-time equivalent and on a group basis) and Self-Employed persons which are recorded in a business registry and bear a VAT number.
Ø Investment Categories5
- The purchase, renovation or extension of tangible assets other than land (except in cases where it is deemed absolutely necessary for the completion of the investment and up to 10% of the total project cost)
- Financing costs during the construction phase for up to 10% of the total Project Cost
- Purchase of assets (other than real estate) e.g. construction equipment, with the purpose of renting them to third parties
- Medium / Long – term Working Capital financing needs arising from the operational activities of the Beneficiaries, e.g. current assets such as stocks and receivables (VAT payments and other obligations to Government are excluded)
- Investment in intangible assets including R&D expenses, purchase of process licenses, patents, brands and trademarks
Ø Excluded Projects / Activities5
- Activities constituting pure real estate development activity and pure financial transactions (e.g. purchase of shares or any other financial product)
- Financing the purchase of farmland
- Activities targeting the production of weapons and ammunition, arms, military or police equipment or infrastructure and any equipment or infrastructure which results in limiting people’s individual rights and freedom (e.g. prisons) or in violation of human rights
- Activities targeting the production or facilitating the use of gambling and related equipment
- Activities targeting tobacco’s manufacturing, processing and/or distribution
- Activities considered ethically or morally controversial or are prohibited by national legislation (e.g. human trafficking and related infrastructure, services and media, animal testing, research on human cloning, nuclear energy etc).
The above information has been prepared by AstroBank Limited for information purposes only. The information contained in this page is a summary form. The eligibility of a Beneficiary, Project or Activity can be only ensured after providing detailed information by the interested parties. Any application for granting credit facilities under EIB scheme, will be subject to the approval of the Bank. Other terms and conditions apply. The Bank reserves the right to withdraw the scheme and/or amend the terms thereof at any time.
For more detailed information for the subject scheme, the ‘Jobs for Youth’ Initiative, the Interest Rates etc, please contact the Bank’s Network on the below links.
Corporate Division: https://www.astrobank.com/Default.aspx?id=1255&nt=18&lang=1
Retail Division: https://www.astrobank.com/Images/Locations.pdf
1 EIB’s ‘Jobs for Youth’ Scheme requires that, the last 6 months or in the coming 6 months, the Eligible Beneficiary has employed or will employ or has provided or will provide vocational training (internship) to 1 young person (or 5 young persons for enterprises employing more than 250 employees, full time and on a group basis) or has participated or will participate in a youth entrepreneurship programme of a Non-Government Organization or educational institution.
2 Requests for Credit Facilities for higher amounts can be evaluated on a case-by-case basis and within the EIB funds availability.
3 The total Interest Rate depends on the assessment of the Beneficiaries’ creditworthiness and repayment ability and the value of the tangible collateral held as security. Choices for fixed rate pricing are also available.
4 The repayment tenor depends on the economic, technical and useful life of the project to be financed.
5 The eligible Investment Categories as well as the excluded Projects/ Activities, refer to a summarized and indicative list, retrieved by sources provided by EIB which are subject to change.