FOSTER PROJECT

EMPLOYMENT COMMITTED SME SUPPORT PROGRAMME

 

 Total grant amount allocated EUR 35 million support will be provided for eligible companies through the SME Support Mechanism
Number of beneficiary SMEs ­At least 697 businesses supported through the SME Support Mechanism
Number of retained/created jobs   ­At least 2,788 formal employment positions will be retained or created

 

WHO CAN BENEFIT FROM THE PROGRAMME?

SMEs that comply with the following eligibility criteria and which are operating in Ankara, Adana, Bursa, Gaziantep, Hatay, İstanbul, İzmir, Kahramanmaraş, Kayseri, Kilis, Kocaeli, Konya, Mardin, Mersin and Şanlıurfa can benefit from the Programme.

 

ELIGIBILITY CRITERIA FOR SMEs

Eligible enterprises shall comply with the following eligibility criteria, according to which the enterprise:

  • must be registered with active status in KOSGEB’s SME Information System.
  • have an update SME declaration form
  • must commit to formally create/retain employment
  • must be established on or before 26 December 2021.
  • shall comply with KfW’s and IFC’s sectoral Exclusion List (please see Annex 2 of the Call for Proposals) and it shall not be part of any EU/UN sanctions lists.
  • shall not fall in Category A according to IFC environmental and social risk categorization.
  • shall not obtain support from ongoing similar programmes and any ongoing BMZ or EU funded FRIT I or FRIT II Project for financing the same project costs and for the employees already financed/to be financed within the SME Support Mechanism.
  • Must be operating in the sectors designated for the provinces as shown in the following table.

 

Provinces Eligible sectors

 NACE REV (2)

Provinces Eligible sectors

NACE REV (2)

Adana

Gaziantep

Hatay

Kahramanmaraş

Kayseri

Kilis

Kocaeli

Konya

Mardin

Mersin

Şanlıurfa

 

C – Manufacturing

J-61: Telecommunication

J-62: Computer programming, Computer programming, consultancy and related activities

J-63: Information service activities

M-72: Scientific research and development

M-74: Other professional, scientific and technical activities

Ankara

Bursa

İstanbul

İzmir

Kocaeli (*)

High technology sub sectors according to OECD and  EUROSTAT classification

Under C (Manufacturing)

C-21: Manufacture of basic pharmaceutical products and pharmaceutical preparations

C-26: Manufacture of computer, electronic and optical products

C-30: Manufacture of other transport equipment

J-61: Telecommunication

J-62: Computer programming, Computer programming, consultancy and related activities

J-63: Information service activities

M-72: Scientific research and development

 

 

(Please see Annex 1 Call for Proposals for the list of high technology sectors).

 

GENERAL INFORMATION ABOUT THE PROGRAMME

Support duration 16 months
Eligible expenses Personnel expenses

Other expenses: machinery, equipment, moulds, software, training

Support ratio %70 for the personnel expenses

%50 for other expenses:

Support ratio for youth and women Support ratio is 100% of personnel expenses for the beneficiary SMEs creating employment for youth (under the age of 30) and/or women.
Monitoring period Every 4 months
Budget EUR 35 Million

SMEs that are willing to benefit from the support should choose one of the employment commitment options in the table below according to the upper support limit.

 

EMPLOYMENT COMMITMENT OPTIONS

For the SMEs operating in Ankara, Bursa, İstanbul, İzmir, Kayseri, Kocaeli, Konya, Mardin and Mersin

Upper Support Limit Employment Target
 

TRY 500,000

*Maximum support amount is 250,000 for machinery, equipment, moulds, software and training

                       

2 jobs will be retained/created. At least 1 job shall be created.

 

1 Turkish citizen + 1 SuTP/FuITP

 

TRY 1,000,000

* Maximum support amount is 500,000 for machinery, equipment, moulds, software and training              

4 jobs will be retained/created. At least 2 jobs shall be created.

 

2 Turkish citizens + 2 SuTP/FuITP

 

For the SMEs operating in the earthquake affected provinces (Adana, Gaziantep, Hatay, Kahramanmaraş, Kilis, Şanlıurfa)

Upper Support Limit Employment Target
 

TRY 500,000

*Maximum support amount is 250,000 for machinery, equipment, moulds, software and training

2 jobs will be retained or created.

Beneficiary SMEs are free to fulfil their commitments through job retention or job creation.

1 Turkish citizen + 1 SuTP/FuITP

TRY 1,000,000

* Maximum support amount is 500,000 for machinery, equipment, moulds, software and training

4 jobs will be retained or created.

Beneficiary SMEs are free to fulfil their commitments through job retention or job creation.

2 Turkish citizens + 2 SuTP/FuITP

 

  • In Ankara, Bursa, İstanbul, İzmir, Kayseri, Kocaeli, Konya, Mardin, Mersin, in each 4-month monitoring period, winning SMEs shall maintain at least the 1/3 of the SSI premium days for the last 12 months preceding the call for proposal announcement date and prove that at least 80 SSI premium days have been paid for each retained/created employee subject to the Personnel Expenses support. As an exception, only in the first monitoring period, at least 40 SSI premium days shall be paid for retained/created employee(s).
  • In the 6 earthquake provinces, in each 4-month monitoring period, winning SMEs shall prove that at least 40 SSI premium days have been paid for each retained/created employee subject to the Personnel Expenses support. In these provinces SMEs do not need to maintain at least 1/3 of the SSI premium days for the last 12 months preceding the call for proposal announcement date in each monitoring period.
  • Job creation refers to the provision of new formal employment that began on or after the call for proposal announcement date and was not previously employed in the same firm within 4 (four) months prior to the announcement date.
  • Support payment is not made to the enterprises with overdue tax and Social Security Institution (SSI) debts over the legal limits (not deferred or restructured) for the related monitoring period. However, if the enterprise has paid/deferred/restructured its SSI and/or tax debt within the program period, support payments are made.
  • SMEs will prepare their applications in compliance with the following support areas under the main theme of the Call for Proposals based on “Improving competitiveness and employment”, and they will commit to retain/create employment.
    • Capacity development (related to human resources, machinery,  equipment etc.)
    • Increasing market share
    • Product development and diversification
    • Increasing the product value added
    • Digitalization
    • Increasing energy efficiency
    • Transition to green production (recycling, recovery and collection/separation activities etc.)
    • Business to business (B2B) transactions
  • Environmental and social requirements
    • Winning SMEs shall submit an environmental and social commitment with their application form in the format specified in the call for proposals.
    • SMEs that fall under Category “C” according to IFC environmental and social categorization process shall commit to assess regularly if the initial classification remains accurate and to inform KOSGEB immediately in case of emergence of higher risks. (Category B or Category A); Category “C” SMEs will also commit to annually report to KOSGEB about their Environmental and Social Management Plan compliance.
    • SMEs that fall under Category “B” according to IFC environmental and social categorization process shall commit to annually report to KOSGEB about their ESMP compliance. They will implement corrective actions proposed by KOSGEB.
    • In case of non-compliance, SMEs will be subject to actions specified in the ESMS guidelines of the FOSTER Project.
sanayi_logo_v2_en
kosgep
kfw

This website was created with the financial support of the European Union. The content is the sole responsibility of KOSGEB and does not necessarily reflect the views of the European Union.