New Flexibility Introduced for SMEs that have Failed to Fulfil Employment Commitments to Benefit from the Grant Support

Within the Empowering the Private Sector to Foster Social and Economic Cohesion in Türkiye (FOSTER) Project the first monitoring period of the Employment Committed SME Support Programme has started on December 1, 2023. A new flexibility has been introduced for SMEs that cannot fulfil their employment commitments in the first period. The flexibility will enable these enterprises to benefit from grant support.

According to the programme, SMEs were required to commit employment of two persons for micro-scale grants and four persons for small-scale grants. The support process for SMEs that could not fulfil their commitments was being terminated.

In accordance with the revision made, SMEs that fail to fulfil their employment commitments in the first monitoring period will be able to benefit from the support in the second monitoring period, provided that they fulfil these commitments in the second monitoring period.

According to the revision, the upper limit of support for SMEs that will benefit from the programme starting from the second monitoring period will be 375,000 TL for a commitment to employ two people and 750,000 TL for a commitment to employ four people.

This flexibility will only apply for the first monitoring period. For SMEs that do not fulfil their employment commitments in the second monitoring periods, the support process will be terminated.

FOSTER Project, financed by the European Union, managed by KfW Development Bank and implemented by KOSGEB, aims to improve the conditions for SMEs to create and retain jobs and strengthen their position as employers by increasing their access to finance.