FOSTER PROJECT

EMPLOYMENT COMMITTED SME SUPPORT PROGRAMME

THE SECOND CALL FOR PROPOSALS

                       

Total grant amount allocated EUR 30,2 million support will be provided for eligible enterprises through the SME Support Mechanism
Number of beneficiary SMEs At least 1.475 enterprises supported through SME Support Mechanism

Number of retained/created jobs

 

At least 2.950 formal employment position will be retained / created

 

WHO CAN BENEFIT FROM THE PROGRAMME?

SMEs that comply with the following eligibility criteria and which are operating in Adana, Ankara, 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 updated SME Declaration Form.
  • must commit to formally create/retain employment.
  • must be established on or before 31.12.2022
  • 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

 

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 30,2 Million

 

EMPLOYMENT:

 

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

Upper Support Limit Employment Target

 

TRY 1,000,000

*Maximum support amount is TRY 500,000 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

 

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

Upper Support Limit Employment Target

 

TRY 1,000,000

*Maximum support amount is TRY 500,000 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

 

  • 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 the new/retained employee(s). 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/retained 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 premiums days verified via the SSI database.

 

  • 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. 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/retained 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 premiums days verified via the SSI database.
  • 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. The upper limit of support for SMEs that will benefit from the programme starting from the second monitoring period will be 750,000 TL for a commitment to employ two people. For SMEs that do not fulfil their employment commitments in the second monitoring periods, the support process will be terminated.

 

  • 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. They will implement corrective actions proposed by KOSGEB.
    • 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.

 

Click here for the Second Code of Practice link of the Second Call for Proposals.

Click here for the Second Call for Proposals link of the Second Call for Proposals.

Click here for the Second Call for Proposals Annex 1 of the Second Call for Proposals.

Click here for the Second Call for Proposals Annex 2 of the Second Call for Proposals.

 

Application Date 29.01.2024-27.02.2024

 

 

 

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