Index – Economy – SMEs in Budapest can obtain interest-free loans of up to $50 million

The first business development loan program to support enterprises exclusively in the capital has been announced. Richard Szápados, State Secretary responsible for SMEs and Technology at the Ministry of National Economy, stated that nearly a third of all local SMEs operate in Budapest, and that 240,000 companies are registered in the capital, employing more than 610,000 people. Budapest is considered an advanced area in terms of EU funds, as a smaller portion of cohesion funds can only reach it under more serious circumstances. At the same time, the State Minister stressed that it is necessary to support companies operating here and promote their development, as is the case in other regions.

450 billion for business development

Through the first priority of the Economic Development and Innovation Operational Program Plusz (GINOP Plusz), the government provides approximately 450 billion Hungarian forints for business development. Richard Szápados stated: HUF 155.54 billion from the above-mentioned framework became available as of the beginning of April with the announcement of the GINOP Plusz-1.4.3-24 SME Technology Plusz Loan Program. This is complemented by the SME Technology Plus Budapest loan programme, which aims to enhance the competitiveness of the capital's SME sector.

Under the program, companies that employ at least one person and have at least one closed year of business can apply for a discounted investment loan with 0% interest. The loan amount can range from 5 to 50 million HUF.

The loan is only available for projects to be implemented in Budapest – this means that the project of an organization based outside Budapest can also be supported if the development is carried out in the capital.

Credit can be used

• To purchase new equipment (machinery, IT equipment),

• To develop technologies that use renewable energy sources, i.e. support green energy,

• To buy an electric car,

• Also for real estate transformation, expansion, renovation or modernization.

Regarding the project, there is a way to use the grant money

• For the acquisition of intangible assets and inventory, respectively

• To finance training and consulting services.

The government's goal is for the economy to be on a higher growth path in 2025 and for GDP growth to be between 3-5 percent. In order to revitalize the economy, the performance of Hungarian-owned SMEs must be strengthened. Richard Szápados spoke about the results of the previous Ginop programme: 156 calls for proposals were made with a budget of 3,540 billion Hungarian forints in the program that ends in 2020. 102 thousand SMEs received support in the programme, creating 61 thousand new jobs and maintaining 400 thousand jobs.

You can apply starting October 28th

Leventi Sipos Tomba, President and CEO of Magyar Fejlzéstési Bank, stated that the bank's network and MFB Pontok helped transfer approximately 1,000 billion Hungarian forints to companies during the previous programming period. As a result, 25 thousand companies were created and – within the framework of the housing programme – similar Number of families who received support.

Existing orders can also be placed through the MFB Pont Plusz network as of October 28, 2024. The CEO noted that the MFB Pont Plusz network currently includes 156 units, of which 15 MFB points operate in Budapest. Levente Sibus Tomba stressed that the 0 percent loan is actually 0 percent, and companies do not have to rely on any additional costs.

In response to a question, the President and CEO of the MFB Bank said: So far, companies have been able to allocate approximately 10 percent of the framework of the technology program announced in April 155 billion, 13 billion forints, and interest in the product continues.