At the end of January 2022, the number of companies benefiting from guarantees guaranteed by the Treasury reached 1.3 million. While the volume of loans reached 741.3 billion liras, the volume of guarantees increased to 635.8 billion liras.
Three new packages, which went into effect last week, have been added to the Treasury-backed packages currently used by KGF. Demands began for the 60 billion lira investment, export and operational expenditure support programs guaranteed by the KGF, which were announced by President Recep Tayyip Erdoğan and then explained by Minister of Treasury and Finance Nureddin Nebati .
These packages, which have just been offered to companies, will help SMEs and non-SME companies operating in different sectors to finance their expenses.
INVESTMENT SUPPORT PACKAGE
As part of the investment support program, it aims to finance investment and investment-related operating expenses of SMEs and non-SME companies that are planning to invest, mainly companies operating in the industry manufacturing and exporting companies.
In the package, the guarantee volume will be 25 billion lira, the guarantee rate will be 85% for SMEs, 80% for non-SMEs and 90% for women entrepreneurs, SMEs and exporters.
The upper limit of the guarantee for SMEs has been set at TL 29.75 million and the upper limit of the loan at TL 35 million. For non-SMEs, the upper limit of the guarantee will be 80 million liras and the upper limit of the loan will be 100 million liras.
The loan term was calculated as a maximum of 120 months including a maximum grace period of 24 months for investment loans, and a maximum of 36 months including a maximum grace period of 6 months for business loans.
Applications can be made until December 31, 2023 for the package, where investment credits up to 70% of the investment amount and additional trade credits up to 25% of the investment credit used can be used.
EXPORT SUPPORT PACKAGE
Together with the export support package, it aims to increase export volumes and increase the number of exporting companies by providing support to SMEs operating in exporting or foreign exchange generating sectors and to SMEs that are not currently exporting but have export potential.
The volume of the bond in the package was determined at 25 billion lire and the rate of the bond was determined at 90%. The upper limit of the deposit will be 22.5 million TL and the upper limit of the loan will be 25 million TL. The term of the loan will be up to 24 months, including a maximum grace period of 6 months, and the maximum grace period for rediscount loans will be 12 months.
Differentiated guarantee/credit ceilings will be applied according to the beneficiary’s end-of-year turnover. SMEs with export potential will be determined by the KOSGEB Presidency and only the data to be shared by the Presidency will serve as the basis for determining these companies.
Applications for the program will close on December 31, 2022.
COMPANY EXPENDITURE SUPPORT PACKAGE
The operating expenditure support program was also allocated to meet the working capital needs of SMEs and non-SME businesses through card payment systems.
In the package, the volume of the deposit was determined at 10 billion lira, the rate of the deposit was determined at 80% for SMEs and 75% for non-SMEs.
For SMEs who wish to benefit from the package, the upper limit of the guarantee will be TL 4 million, the upper limit of the loan will be TL 5 million, and for non-SME companies, the said limits will be applied at 15 and 20 million. from TL.
The duration of the loan will be calculated on a maximum of 30 months, including a maximum grace period of 6 months, and a maximum of 12 months for disbursements via the card payment system.
In the program, standard banking practices will apply to revolving loans linked to credit cards and debit/commercial cards, and cleared limits can be reused when the beneficiary makes a payment.
The program will continue until December 31, 2023.
Other treasury-supported KGF packages used by companies include Supplemental Employment Support Package, Turkish Development and Investment Bank (TKYB) Credit Support Package, TURWIB program, the manufacturing-based import substitution support package and the cold air unit and refrigerated vehicles support package.
With these packages, financing opportunities are offered to SMEs and non-SME companies operating in various sectors. There are also KGF packages that provide special funding opportunities for women-led businesses.
ADDITIONAL JOB SUPPORT PACKAGE
With the Forfait Supplémentaire d’Aide à l’Emploi, it aims to finance private sector companies which have fewer than 50 insured persons in the March 2021 withholding tax and service premium declarations and which create or undertake to create additional jobs, for use in contract or billing-related operating expenses for their businesses.
In the said support program, the total collateral volume was determined at TL 10 billion, the collateral rate was 80% and the loan volume was TL 12.5 billion.
For companies wishing to benefit from the package, the maximum deposit is 400,000 liras. Loans for the Supplemental Employment Support Program are provided for a total of 26 months, with the first 8 months being principal and the first 14 months interest free.
Each beneficiary can benefit from the possibility of guarantee for a maximum of 5 additional jobs and a maximum loan facility of 500,000 liras, with a maximum of 100,000 liras for each additional job.
All expenses must be documented with a contract or invoice.
The end date of the program has been set for July 1, 2022.
TKYB CREDIT SUPPORT PACKAGE
Support for KGF-guaranteed loans is provided to companies through TKYB, regardless of sector. Thus, it aims to meet the investment financing needs of companies regardless of their sector.
The total collateral volume of the package was determined at 2 billion TL, the collateral rate was 80% and the loan volume was 2.5 billion TL.
The upper limit of the loan for SMEs wishing to benefit from the package in question is 43 million 750 thousand liras, and this amount is 312.5 million liras for non-SME workplaces.
The maturity of business loans will be at least 6 months, a maximum grace period of one year and a maximum of 5 years. Investment loans have a maximum term of 10 years, with a minimum of 6 months and a maximum grace period of 3 years.
It can be applied to investment loans exclusively in the form of loans in tranches within a maximum period of 3 years, provided that they remain within the grace period of the loan, and bring the loan to an “open” position by the intermediary of SMEs. The VAT amount is included in the loan amount.
The end date of this program has been set for December 31, 2023.
TURWIB PROGRAM SUPPORT PACKAGE
With the support program of the TURWIB program and the resources provided by the European Bank for Reconstruction and Development (EBRD), under the TurWiB program, support is provided to women-led businesses and aims to increase the participation of women. women in business.
The total surety volume of the package in question was determined at 3 billion lira, the surety rate was 80% and the loan volume was 3.75 billion lira.
For manufacturers and exporters who wish to take advantage of the package, the upper limit of the deposit is 9 million 600,000 liras and the upper limit of the credit is 12 million liras.
For other businesses, the upper limit of the deposit is 5 million TL and the upper limit of the loan is 6 million 250,000 TL.
A maximum loan term of 60 months, including a maximum grace period of 12 months, is applied for business loans, and a maximum of 120 months, including a maximum grace period of 36 months, for investment loans. .
According to the conditions of implementation of the TurWIB program, loans are not granted to companies that have partnerships with institutions that are 49% or more owned in Turkey. Under the program, only SME-sized companies can grant loans.
The program will end on March 31, 2023.
MANUFACTURING-BASED IMPORT SUBSTITUTION SUPPORT PACKAGE
It is intended to secure investment expenditure by enterprises under the Technology-Based Industry Transfer Program and enterprises that have regional, priority, strategic or project-based investment incentive certificates for their investments in manufacturing industry, excluding Istanbul.
The total guarantee volume of the said support program has been determined at 10 billion lire, the guarantee rate has been determined at 90% for SMEs and 85% for non-SME companies.
For SMEs who wish to avail the package, the upper limit of the deposit is TL 35 million and the upper limit of the loan is TL 38.9 million.
For non-SME workplaces, the upper limit of the deposit is TL 250 million and the upper limit of the loan is TL 294 million.
The maturity of the loan, which will be extended into an investment loan, has been set at a maximum of 120 months, including a minimum amortization grace period of 6 months and a maximum of 24 months.
The program will end on December 31, 2023.
COLD AIR UNIT AND REFRIGERATED VEHICLES ASSISTANCE GROUP
In the support package for the cold air unit and refrigerated vehicles, it aims to support the access of SMEs to finance, in particular with the financing of the cold air unit and refrigerated vehicles with certificate national goods.
In the said support program, the surety volume is TL 3 billion, the surety rate is 90% and the loan volume is TL 3.33 billion.
For SMEs wishing to benefit from the aid, the guarantee ceiling is set at 6.75 million lire, the credit ceiling at 7.5 million lire and the loan is rescheduled over a maximum of 36 months, of which a maximum of 6 months . Grace period.
As part of the package, the investments must be documented by a contract or an invoice, and these documents must relate only to the purchase of cold air units and refrigerated vehicles.
The plan expires on December 31, 2022.