Small and Medium Enterprises Development and Support Administration (KOSGEB) launched the Emergency Support Loan Program in order to quickly return the businesses damaged in the earthquake zone to their activities. The program covers approximately 30 thousand SMEs in 11 provinces in the earthquake zone and affected by the earthquake. In this situation, businesses will be provided with fast financing up to 1.5 million liras, depending on their scale.
With the loan program, a loan volume of 11 billion TL will emerge. KOSGEB will cover the entire financing cost of 3 billion TL. In other words, businesses will benefit from the program at zero interest.
Industry and Technology Minister Mustafa Varank also visited Antakya Organized Industrial Zone as part of his Hatay visit. Minister Varank, who made a press statement after the program where he met with the industrialists, stated that they have activated the KOSGEB Emergency Support Loan Program and said, “We provide interest-free loan support up to 1.5 million liras, depending on the size of the enterprise and the damage caused. We have taken the necessary steps to partially or completely delete KOSGEB receivables in the disaster area,” he said.
SMEs that manufacture, supply parts based on manufacturing, and also carry out repair activities related to manufacturing, and businesses engaged in architectural activities will be able to benefit from the KOSGEB Emergency Support Loan Program, which was initiated with the aim of enabling SMEs to start their business again.
The limit will be increased according to the damage situation.
workplace from the Emergency Support Program; Damaged SMEs located in small industrial estates (CSR), organized industrial zones (OIZ) or other workplace clusters will be able to benefit. In this situation, micro enterprises will be able to use credit up to 250, small enterprises 500, and medium-sized enterprises up to 1 million liras. These limits will be increased by 50 percent in enterprises with heavy or higher damage. If a medium-sized business is heavily damaged, the total credit limit will increase to 1.5 million liras.
All of the interest will be covered by KOSGEB.
Businesses that will benefit from the Emergency Support Loan, which was initiated with the aim of returning the economic and social life to normal in the region, will not pay back for the first 12 months. In the next 24 months, the payments will be made in 3-month installments. The program will be implemented with zero interest, all of the interest will be covered by KOSGEB. KOSGEB aims to benefit 30 thousand SMEs from this program and to create a loan volume of 11 billion liras. In this case, the cost of interest or profit share to be used by businesses will reach 3 billion liras. KOSGEB will cover the entire financing cost.
KGF will be active
The Credit Guarantee Fund (KGF) will be active for businesses that have a shortage of collateral. Businesses whose status is documented by official authorities such as the governor’s office and district governor’s office will be able to use the Emergency Support Loan.