Interest/Profit Share Subsidy Programme

Total Indicators

FOSTER Interest Rate / Profit Share Subsidy Mechanism

WHO CAN BENEFIT FROM THE PROGRAMME?

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

ELIGIBILITY CRITERIA for SMEs

An eligible SME

• Must be operating in one of the Project provinces listed above.
• Must be segmented as micro, small and medium-sized enterprises (SMEs) in line with the SME definition given in the Regulation titled “Regulation on the Change of Definition, Qualification and Classification of Small and Medium Sized Enterprises”, published in the Official Gazette on August 7, 2025, no. 32979.
• Must operate in Part C – Manufacturing sector or Chapter 62 – Computer programming, consulting and related activities sector or Chapter 72 – Scientific research and development activities sector as classified under Statistical Classification of Economic Activities in the European Community (“NACE Rev.2”).
• Must declare, at the stage of application to KOSGEB, non-involvement in similar programmes and in any BMZ or European Union (EU) funded FRIT I or FRIT II project or program for the same employment commitment.
• Must be registered with active status in KOSGEB SME Information System (KOBI Bilgi Sistemi – KBS) and not banned from KOSGEB supports.
• Must have updated its SME information declaration form.
• must comply with the “Exclusion List and Sectoral Guidelines of KfW Group” (Please click here to view the list)
• shall not be part of any European Union (EU) / United Nations (UN) sanctions list.
• Must commit to formally create or retain employment for at least 1 (one) Turkish citizen and 1 (one) foreigner under temporary/international protection in accordance with the provisions of the application form.

EMPLOYMENT CRITERIA

• If at least one of the employment positions is woman or youth (aged 18 – 29), amount up to EUR 2,500 per period (up to EUR 15,000 in total) will be paid.
• For the respective installment period, at least 46 SSI premium days must have been paid for each employee subject to the employment commitment.
• The interest rate applied to SME loan will be determined by the bank.
• KGF guarantees will cover up to 80% of the loan amount for beneficiary SMEs.
• Job creation refers to the provision of new formal employment opportunities after the Interest Subsidy Mechanism launch date (July 1, 2025).
• New employees covered under the employment commitment must not have been employed by the enterprise within the last three (3) months prior to their hiring date.
• Turkish citizens and SuTP/FuIPs within the employment commitment must be employed full-time.
• The program start date is July 1, 2025, as the Interest Subsidy Mechanism launch date, and will be considered as the start date of the employment commitment.
• For achieving job retention/creation target in each 3-month monitoring period, beneficiary SMEs shall maintain at least three times the lowest number of SSI premium days paid within a month over the last 12 months preceding the launch date (July 1, 2025) of the Interest Subsidy Mechanism.

IMPORTANT REMARKS

• A loan agreement will be signed bilaterally with the partner bank and the beneficiary SME qualified for an eligible loan.
• The loan maturity will range between 18 months and 36 months.
• Loan repayments will be made in equal amounts in quarterly periods and Loan Repayment Plan will be arranged accordingly.
• The SMEs will be monitored six times in three months periods. Interest/Profit share subsidy payments will continue for 18 months, regardless of the loan maturity.
• SMEs that fail to meet their employment commitments for three consecutive support periods will be removed from the support programme. The loan process with the bank will continue.
• SMEs commit to complying with the following requirements within the scope of Environmental and Social Requirements.
  • To comply with the national environmental legislation
  • To comply with the national occupational health and safety legislation
  • To comply with principles such as honest and fair treatment of its employees, providing a safe and healthy working environment, non-discrimination, creating suitable working conditions for disabled people, and not employing child labour
  • To use resources in an efficient way, take the necessary measures to prevent environmental pollution
  • To not take actions that will adversely affect the health and safety of society
  • If there are environmental and social risks that affect society, SMEs will share them with the stakeholders and take their suggestions into consideration.