Funded by the European Union, managed by the German Development Bank (KfW) and run by KOSGEB, “Empowering the Private Sector to Foster Social and Economic Cohesion in Turkey” Project has been launched!
Based on the Grant and Project Implementation Agreement signed on January 13, 2021 between the Ministry of Industry and Technology of the Republic of Turkey and the German Development Bank (KfW), the Project will offer Interest Rate Subsidy support to at least 1,500 enterprises and Grant Support to approximately 700 enterprises. Total amount of financial support to be provided to the Turkish SMEs within the Project is 65 million Euros.
The Project “Empowering the Private Sector to Foster Social and Economic Cohesion” aims to create and retain employment for Turkish citizens and foreigners under temporary protection. The project will be implemented in 15 provinces of Turkey; namely Adana, Ankara, Bursa, Gaziantep, Hatay, İstanbul, İzmir, Kahramanmaraş, Kayseri, Kilis, Kocaeli, Konya, Mardin, Mersin ve Şanlıurfa.
Small and Medium Sized Enterprises (SMEs) operating in 15 project provinces and registered in the database of the Small and Medium Enterprises Development Organization (KOSGEB) will be able to benefit from the support mechanisms. To be announced in the first quarter of 2022, the Project consists of two components.
Component I- Interest Rate Subsidy Support up to 30 million Euros
SMEs operating in 15 project provinces will have an increased access to finance with favorable conditions for financing their investments and working capital needs. Through the Interest Rate Subsidy Mechanism, it is aimed to create formal employment for unemployed or informally employed Turkish citizens and foreigners under temporary protection, thereby integrating them into economic life and protect the jobs of those who are currently employed.
Within the Interest Rate Subsidy Mechanism, interest expenditures of SMEs who obtained a loan from participating banks will be partially covered from the project funds of up to 30 million Euros based on the condition that beneficiary SMEs create and retain formal employment.
Component II – Grant Support of up to 35 million Euros
Component II will support the projects of SMEs operating in 15 project provinces to increase their share, efficiency, competitiveness and added value in the economy; which in turn are expected to create employment for Turkish citizens and foreigners under temporary protection.
A total of 35 million Euros grant support will be channeled to the SMEs through call for proposals to be launched by KOSGEB under three windows: (i) Improving Competitiveness, (ii) Strategic Products, (iii) Technology & Innovation and Business to Business (B2B) Cooperation Programmes.
For press inquiries,
Miray Akdağ, Press Counsellor