SME Digital Transformation Support Program

SME Digital Transformation Support Program

Supports Turkish manufacturing companies with subsidized interest coverage for digital transformation equipment and software purchases.

The KOSGEB SME Digital Transformation Support Program provides an interest subsidy on commercial bank credit for Turkish manufacturing SMEs investing in digital transformation. Rather than disbursing cash directly, KOSGEB covers the interest cost on loans provided by partner banks — TEB, İş Bankası, and Yapı Kredi — making the effective borrowing rate zero for the recipient. The interest subsidy covers 1,000,000 to 20,000,000 TRY of underlying credit per enterprise. Project duration is 24 months, with a maximum credit term of 36 months and an optional grace period of up to 6 months at the bank's discretion.

Eligibility is restricted to small and medium-sized enterprises (microenterprises are explicitly excluded) in the manufacturing sector (NACE Code C) that are registered and active in the KOSGEB database. Financial health criteria apply: the applicant must have positive equity on its most recent balance sheet and positive operating profit in at least one of the past three fiscal years. Eligible purchases are limited to digital transformation assets — specifically machinery, equipment, software, and hardware directly related to the company's assessed digital transformation roadmap. Purchased assets cannot be sold or transferred for one year following final credit repayment.

The application process begins with obtaining an approved digital transformation or maturity assessment report from KOSGEB-authorized consultants. The applicant then submits through the KOSGEB KDS system; following KOSGEB's Evaluation Board decision, the applicant applies for the underlying commercial credit at one of the three eligible partner banks. KOSGEB disburses interest support payments upon verification of purchases. This sequencing — assessment first, then KOSGEB approval, then bank credit — means preparation time is substantial, and applicants should engage certified consultants early in the process.