EIB Loans

EIB

Financing Plans for Cyprus Businesses in
cooperation with the European Investment Bank





USB BANK, in cooperation with the European Investment Bank (EIB), is offering a new Financing Plan to support the sustainable development of Cypriot businesses and to strengthen youth employment. Through this new plan, small and medium enterprises (SMEs) and mid-cap companies can benefit from financing with favorable terms.

 

Eligible Businesses

  • SMEs (companies / partnerships which employ less than 250 permanent employees) at the time of the financing application to the European Investment Bank.
  • Mid-cap businesses (companies / partnerships which employ between 250 and 3000 permanent employees) staff of 250 persons to 3000) at the time of the financing application to the European Investment Bank.
  • Self-employed entrepreneurs (registered for VAT and social security).

Businesses must be either independent or partner enterprises, or affiliated undertakings (linked enterprises). These businesses must also be registered, incorporated and operating in Cyprus.

Businesses engaged in any of the following activities are excluded from the plan:

  • Manufacturing of weapons, ammunition, military or police equipment and/or infrastructure and supply of the above or of infrastructure restricting human rights or freedom (eg prisons, correctional facilities, detention centers of any form, etc.)
  • Gambling or related equipment.
  • Production or processing, distribution, use of tobacco or distribution of specialised tobacco products and activities that facilitate the use of tobacco (eg "smoking rooms").
  • Activities involving the use of live beings for experimental and scientific purposes insofar as compliance with the "Council of Europe Convention for the Protection of Vertebrate Animals used for Experimental and other Scientific purposes" is not guaranteed / can be assured.
  • Activities that have a negative impact on the environment which is not offset / compensated.
  • Activities that are considered ethically or morally controversial or prohibited by national law (such as research into human cloning).
  • Purchase and development / renovation of immovable property for the purpose of selling or renting to third parties.
  • Purchase of land for cultivation.
  • Purchase of goodwill or intangible assets (e.g. production licenses in the pharmaceutical industry), which could lead to or impose a strong market position for the applicant (e.g. market share in excess of 20%). No financing is available for the financing of the acquisition of licenses or rights to exploit mineral resources.
  • Activities that are purely financial transactions (such as purchase of shares or other securities / financial instruments).
  • Financial holdings companies whose permanent financial activity is to own and manage a portfolio of investments in equity and financing for the acquisition of other companies.
  • Leasing companies associated with a particular manufacturer.

Purpose of Financing

Customers can choose the financing plan for the following purposes, provided always that the investment is in Cyprus and satisfies the relevant regulations and laws that govern it, both in Cyprus and the European Union, with particular emphasis on environmental protection:

  • Purchase / construction / extension / renovation of real estate for own use (buildings and equipment), excluding financing for the purchase of land (unless it is considered technically necessary for the investment). The purchase of land for farming purposes is excluded in all cases.
  • Purchase of assets (other than real estate mentioned above). This category includes assets which are intended to be rented to third parties.
  • Investment in intangible assets such as:
     Costs for the design, development, and financing of an asset during the construction of tangible assets.
     Research and Development costs, including salaries of persons directly related to the research being financed.
     Creation of distribution networks in domestic or other markets within the European Union (acquisition of assets and / or brands, operating and labor costs).
  • Costs for the purchase of patents and licenses, where they are necessary.
  • Medium-term / long-term working capital needs, which require at least a 2-year financing period.
  • Generation change (i.e. retirement of previous owners) or business change associated with personnel, or which allows the continuation of the economic activity of that business.

Main Financing Characteristics

Currency:Euro

Amount of Financing

  • The amount of the financing may cover up to 100% of project costs, provided this is in compliance with the directives of the Central Bank of Cyprus and the terms of the Plan.
  • Compliance with the state aid provisions of the European Union regulations on “De Minimis Aid”.
  • The specific project work will not participate in more than one sponsorship / support nor will it be co-financed by other EIB funds.

Interest Rate / Pricing

A preferential interest rate is offered (choice of fixed or floating), being 1% lower than the rate that the Bank would charge for the same financing without participation in this new plan, as follows:

  • Fixed Rate of 3.25% per annum or floating rate linked to the 6M Euribor plus margin of 3%. (If Euribor falls below zero, the Bank will floor it at zero (0%) and the interest rate will be at 3%).
     
  • Preferential interest rate, reduced by 0.50% if the financed project is in business promoting the employment of young people (15 to 27 years) and meets the criteria of the EIB “Jobs Program for young people”.

In order to join the program “Jobs for youth”, a business must meet at least one of the following three criteria:

  • It has hired during the last six months, and continues to employ, at least one young person (at least 5 for midcap businesses) in the business or that it plans to hire at least one young person (at least 5 for midcap businesses) in business for the following 6 months from the date of signing the financing, or
  • It provides professional training / internship / educational programs to young persons and that there are recent examples of young persons who have attended and benefited from it, or
  • It maintains an active cooperation agreement with a technical school or college or university for the employment of young persons (e.g. during the summer or for internships or apprenticeships) and that there are recent examples of young persons, who have attended and benefited from them.

Duration of Plan

  • The project will have a duration of 2-12 years.

Investment Implementation Duration

  • Maximum implementation period for the investment (financed project) of 3 years.

Important Information

  • Terms and conditions apply.
  • The Bank reserves the right to reject any application or to withdraw / amend the plan without notice.
  • Collateral is required as per the prevailing policy of the Bank.
  • The granting of credit facilities entails the payment of loan arrangement fees of 0.25%-0.50% of the original loan amount and of legal documentation costs of €100.

Contact / Application Procedure

For further information and supporting documents required by the Bank during the submission of the application for the financing, you may contact your Account Manager or the Bank’s Corporate Units:

Nicosia Corporate Unit
1, Andrea Chaliou, 2nd Floor, 2408 Engomi, Nicosia

Tel.: 22883513
Fax:  22460398

Larnaca Corporate Unit
2 Yiannou Kranidioti street, Fire brigade traffic lights
6045 Larnaca

Tel 24664252
Fax:  24665140

Famagusta Corporate Unit
129 April 1st Avenue & Marias Syglitikis street
5280 Paralimni

Tel.: 23812266
Fax: 23812261

Limassol Corporate Unit
205 Arch. Makarios III Avenue
3030 Limassol

Tel.: 25822877
Fax: 25822879

Paphos Corporate Unit
23 Apostolou Pavlou Avenue
8046 Paphos

Tel.: 26 818558
Fax: 26818553

 

Customer Service Call Center: 8000 23 23 / International Calls: +357 22 883 333

For your convenience, you can print the necessary forms (see below), complete them and take them to USB Bank when submitting your application.

Forms

Job for Youth
Written Statement of the State aid control regulations «de minimis»
Specimen Statement (regarding the classification as SME)
Responsible customer declaration