Bezen & Partners | News

Our Information Note on KOSGEB’s financial support to SMEs as another COVID-19 measure has been published.

Information Note:

Amendments concerning the scope and amount of KOSGEB’s financial support to SMEs as another COVID—19 measure







As part of the government’s measures in the fight against the COVID-19 pandemic, Presidential Decree No. 2350 on the Amendment of the Decree on the Provision of Financial Support with Favourable Conditions by KOSGEB[1] for the Development and Support of Small and Medium Sized Enterprises (the “Decree”) has been published in the Official Gazette dated 3 April 2020 and numbered 31088. The Decree introduces certain amendments with respect to KOSGEB’s support regarding the interest payments of Turkish lira and foreign currency loans to be disbursed for investment, working capital or export purposes in order to provide solutions for the financing needs of small and medium sized enterprises (“SMEs”).


KOSGEB has been established in 1990 with the objective to increase the competitiveness and industrial integration (in line with economic developments) of small and medium sized industrial enterprises (“SMIEs”) as well as their share and efficiency in addressing the economic and social needs of the country.

As such, KOSGEB provides SMIEs with support in (i) entrepreneurship; (ii) R&D, innovation and localisation; (iii) enterprise development, growth and internationalisation; (iv) financing; (v) product quality laboratories; and (vi) business and technology development centres.

The amendment introduced with the Decree relates to KOSGEB’s finance support. KOSGEB’s support in this area involves the execution of protocols between KOSGEB and domestic and foreign banks located in Turkey in which KOSGEB undertakes the partial payment of interest of Turkish lira and foreign currency loans disbursed by such banks to SMIEs for investment, working capital or export purposes. Such protocols further involve the negotiation of additional banking costs and commissions payable by SMIEs between KOSGEB and the banks in favour of SMIEs.


The most fundamental amendment of the Decree is that the finance support of KOSGEB is now not only with respect to SMIE but also SMEs. As such, references to “SMIEs” in the relevant Council of Ministers decision (amended by the Decree) has been changed to “SMEs” and the respective definition of SMEs has been widened in scope. KOSGEB’s finance support is therefore now available to all SMEs.

Another amendment of the Decree is with respect to the upper limit of KOSGEB’s finance support. Prior to the introduction of the Decree, KOSGEB’s finance support was limited to TL 300,000 per enterprise. With the Decree, such upper limit has been amended as “TL 3,000,000 per annum”. Hence, any finance support to be provided to SMEs has thereby been increased to a considerable extent.

Finally, the maturity period of loans qualifying for KOSGEB’s finance support has been extended from 48 months to 60 months. 


The amendments of the Decree facilitates SMEs access to financing via KOSGEB, irrespective of whether or not they are active in the industrial sector. The Decree therefore constitutes a further measure to alleviate the adverse effects of the COVID-19 pandemic on SMEs.  


For more information please contact Bezen & Partners:

Yeşim Bezen (Telephone + 90 212 366 6804, E-mail [email protected])

Serdar Bezen (Telephone +90 212 366 6803, E-mail [email protected])



[1] The Small and Medium Sized Enterprises Development Organisation (Küçük ve Orta Ölçekli İşletmeleri Geliştirme ve Destekleme İdaresi Başkanlığı).