TRY 1.4 Billion Grant Support for SMEs from FOSTER Project
The SMEs that will benefit from the FOSTER Project’s grant programme, which is funded by the European Union, managed by the KfW Development Bank, and run by KOSGEB, have been announced. A total of TRY 1,4 billion in grant support will be provided to approximately 1,500 SMEs under the scope of the programme.
FOSTER Project Employment Committed SME Support Programme will contribute to creating and retaining over 5,800 jobs in project provinces. Beneficiary SMEs will be able to benefit from up to TRY 1 million in grant support for personnel, machinery, equipment, molds, software, and training expenses. Within the program’s scope, the support ratio is 70% for eligible personnel expenses and will be increased to 100% for beneficiary SMEs creating jobs for youth (under the age of 30) and/or women.
FOSTER Project Seventh Technical Steering Committee Meeting was Held at KOSGEB
The FOSTER Project’s Seventh Technical Steering Committee Meeting was held in a hybrid format, with representatives from the European Union Delegation in Türkiye, KfW Development Bank, and KOSGEB PMU in attendance. At the meeting on September 11, 2023, the progress made within the scope of the project was discussed. The presentation detailed the accomplishments made under the Interest Rate / Profit Share Mechanism, SME Support Mechanism, Institutional Capacity Building, and other activities. The meeting also covered planned activities for the next implementation period.
FOSTER Project Fifth Steering Committee Meeting was Held Online
The Fifth Steering Committee Meeting of Empowering the Private Sector to Foster Social and Economic Cohesion (FOSTER) Project was held online on September 12, 2023. Representatives from the European Union Delegation to Türkiye, KfW Development Bank, KOSGEB and The Ministry of Industry and Technology, Turkish Employment Agency, Presidency of Migration Management, Turkish Red Crescent, Development and Investment Bank of Türkiye, Ziraat Bank, International Labour Organization (ILO), The International Centre for Migration Policy Development (ICMPD), The Union of Chambers and Commodity Exchanges of Türkiye (TOBB) have attended the meeting.
At the meeting, information was provided on the number of jobs created and retained within the scope of the project since the last Steering Committee Meeting on January 30, 2023, as well as progress made within the scope of both support mechanisms, capacity development, and other project activities. The meeting concluded after receiving opinions and comments from stakeholders.
Adjustment for the First Monitoring Period
Within the scope of Empowering the Private Sector Foster Social and Economic Cohesion in Türkiye (FOSTER) Project Employment Committed SME Support Programme, conditions have been relieved for SMEs that are having difficulties in fulfilling their employment commitments due to the inability to complete work permit processes during the first monitoring period.
Within the scope of the revision, on an exceptional basis and only in the first monitoring period, beneficiary SMEs with less than 40 SSI premium days (but equal to or higher than 1 SSI premium day) for each new employee will be deemed to have fulfilled the 40 days eligibility criteria if they can prove that the work permit application procedure (duration between work permit application and approval) has taken more than 30 calendar days. In any case, the amount of support payment is calculated according to the number of SSI premium days verified via the SSI database.
New Flexibility for SMEs to Fulfil their Employment Commitments for the First Period
The first monitoring period of the Employment Committed SME Support Programme has started on December 1, 2023 within FOSTER Project. 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 TRY 375.000 for a commitment to employ two people and TRY 750.000 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.