Factsheet for measure
HU-2024-18/3637
– measures in Hungary
SME Technology Plus Loan Programme
KKV Technológia Plusz Hitelprogram
Background information
The objective of the scheme is to help micro, small, and medium enterprises increase their productivity and value-added through technological and organisational renewal. The government intends to support investments that can generate business revenues and pay off in the short and medium term but are hindered by an adverse financial market environment. An additional aim is to enhance businesses’ access to technologies that use renewable energy and their ability to adjust their activities in alignment with the government’s 'Intelligent Specialisation Strategy'. The programme was launched under the Multiannual Financial Framework (GINOP Plusz-1.4.3-24)
Content of measure
The programme provides interest-free investment loans for micro, small and medium enterprises, as well as self-employed individuals, that have been in business for at least one full financial year. The loan amounts range from HUF 5 million to 100 million (€12,000 to 144,000). These loans can be spent on new machinery and equipment, information technology equipment, green energy technologies, electric vehicles, related intangible assets, and on training and advisory services. At least 50% of the total eligible cost must be spent on tangible equipment. The deadline for the completion of the investment project is 18 months after the conclusion of the loan agreement. The applicants must cover at least 10% of the total investment cost from their own resources.
Only enterprises operating outside Budapest are eligible to apply for the loan. The loan can be used for an investment project implemented outside Budapest.
The total programme allocation is HUF 155.54 billion (approximately €380-390 million). At least 65% of the allocation must be provided to enterprises implementing investments in the four least developed regions: Southern Great Plains, Southern Transdanubia, Northern Great Plains, and Northern Hungary.
Applications for the loans can be submitted between 30 April 2024 and 30 December 2024.
According to the official factsheet and application counter page, the applications arrived so far amount to 0% of the available programme budget, that is, nobody, or virtually nobody has applied for the loan so far. No details are provided by government sources, or other sources. But the fact that the government substantially broadened the pool of eligible enterprises – eliminating original restrictions based on personnel size and sector as a belated response to critiques indicated in the 'Views' bracket – suggests that interest in the programme may be low indeed.
Use of measure
According to the official factsheet and application counter page, the applications arrived so far amount to 0% of the available programme budget, that is, nobody, or virtually nobody has applied for the loan so far. No details are provided by government sources, or other sources. But the fact that the government substantially broadened the pool of eligible enterprises – eliminating original restrictions based on personnel size and sector as a belated response to critiques indicated in the 'Views' bracket – suggests that interest in the programme may be low indeed
Target groups
Actors and funding
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Actors
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Funding
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National government
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European Funds
National funds
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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No involvement
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No involvement
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Form
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Not applicable
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Not applicable
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Social partners' role in the
implementation, monitoring and assessment phase:
-
No involvement
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Main level of involvement: N/A
Involvement
No involvement was reported.
Views and reactions
Many commenters responded to the draft of the call for tenders by requesting the easing of the restriction of eligible enterprises to businesses with at least 5 employees, arguing that the smaller enterprises find it particularly difficult to access investment credit through alternative channels, and that several lines of business are dominated by such very small enterprises. While the government initially responded that the central aim of enhancing competitiveness warrants the restriction, in late July it amended the terms of the programme, making it available to businesses with 1-4 employees. Another request by many commenters was to eliminate the exclusion of construction enterprises from the original version of the programme. Again, the government opined first that such a softening of rules would have been contrary to the objective of enhancing productivity, yet it lifted the restriction in late July.
Sources
