FOSTER SME Support Mechanism
Total grants allocated Totally EUR 35 million incentives will be provided to selected enterprises via SME Support Mechanism
Number of Beneficiary SMEs At least 697 businesses under Component II – SME Support Facility are reached
Total jobs created / retained At least 2.788 formal employment positions retained or created for Final Beneficiaries (at least 50% being foreigners)

WHO CAN BENEFIT FROM THE PROGRAMME?

Small and medium sized enterprises (SMEs) operating in Ankara, Adana, Bursa, Gaziantep, Hatay, İstanbul, İzmir, Kahramanmaraş, Kayseri, Kilis, Kocaeli, Konya, Mardin, Mersin and Şanlıurfa will benefit from the Programme.

ELIGIBILITY CRITERIA for SMEs

  • An eligible SME must be an enterprise, firm, business, or other legal entity formed under the laws of the Republic of Türkiye.
  • Should be registered and located in one of the Project provinces listed above.
  • Shall be established before the call for proposal announcement date.
  • Must be classified as micro, small and medium-sized enterprises (SMEs) in line with the definition of SME as given in the decision of the Council of Ministers of Türkiye titled “Regulation on the Definition, Qualification and Classification of Small and Medium- Sized Enterprises no. 2022/11828”, published in the Official Gazette on 18 March 2022.
  • Operate in Part C – Manufacturing sector or J61 – Telecommunications or J62 – Computer programming, consultancy and related activities or J63 – Information service activities or M72 – Scientific research and development activities or M74 – Other professional, scientific and technical activities sector as classified under Statistical Classification of Economic Activities in the European Community (“NACE Rev.2”) in case the applicant SME is located in Adana, Gaziantep, Hatay, Kahramanmaraş, Kayseri, Kilis, Konya, Mardin, Mersin or Şanlıurfa.
  • Operate in “high technology” sub-sectors in case the applicant SME is located in Istanbul, Ankara, Izmir, Kocaeli or Bursa.
  • Shall not fall in Category A according to IFC environmental and social categorization process.
  • Must declare the non-involvement in similar programmes and in any BMZ or Erupean Union (EU) funded FRIT I or FRIT II project or program for the same employment creation/retention, at the stage of application to KOSGEB.
  • Must be registered with active status in KOSGEB’s SME Information System (KOBI Bilgi Sistemi – KBS) and not banned from KOSGEB supports.
  • Must comply with KfW’s Sectoral Exclusion List.
  • Shall not be part of any European Union (EU) / United Nations (UN) sanctions lists.
  • Must commit to formally create or retain employment for at least 1 (one) Turkish citizen and 1 (one) foreigner under temporary or international protection at the time of SME Loan application.

PROJECT DETAILS

Duration 16 months
Eligible Expenses Personnel Expenses which shall constitute at least 50% of overall support proposal;

Other Expenses (i.e. machinery, equipment, software, training etc.) which may constitute maximum 50% of the overall support proposal.

Support Ratio 70% for personnel expenses

50% for other expenses

Strategy for Supporting Women & Youth Support ratio will be increased to 100% of personnel expenses for the beneficiary SMEs employing young (under the age of 30) and/or women employees
Monitoring Period 4 months
Budget EUR 35 million

EMPLOYMENT CRITERIA

Upper Support Limit Micro-scale Supports:

TRY 500.000

(equivalent of EUR 25.000)

Small-scale Supports:

TRY 1.000.000

(equivalent of EUR 5.000)

Employment Target Totally 2 jobs will be retained and/or created.

(At least 1 job shall be created)

1 ESSN beneficiary and/or Foreigner under temporary or international protection + 1 Turkish citizen

 

Totally 4 jobs retained and/or created.

(At least 2 jobs shall be created)

2 ESSN beneficiary and/or Foreigner under temporary or international protection + 2 Turkish citizen

 

POTENTIAL SUPPORT AREAS

  • Business development capacity building (human resources, machinery, equipment, etc.);
  • Activities increasing market share;
  • Product development and diversification;
  • Supplier diversification;
  • Branding and marketing development;
  • Institutional infrastructure activities supporting rapid growth;
  • Operations towards creating or strengthening the infrastructure such as certification, measurement, control, etc. in order to improve processes and ensure continuity in product quality;
  • Starting or increasing exports;
  • Development of manufacturing capacity;
  • Increasing the added value of the product;
  • Development of qualified workforce;
  • Strengthening the information technology infrastructure;
  • Digitalization;
  • Increasing energy efficiency;
  • Transition to green production (recycling/recovery and collection/separation activities etc.);
  • Developing design and engineering capabilities;
  • Business to business (B2B) cooperation;
  • Any other areas deemed to be appropriate by the KOSGEB Committee.
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