TKYB to support firms with further EU grants

ISTANBUL

The Development and Investment Bank of Turkey (TKYB), which has been providing a variety of funding opportunities to secure Turkey’s development, will now offer a grant to enterprises.

Last year, TKYB secured some 316 million euros of loans from the World Bank under the Treasury and Finance Ministry guarantee to increase formal employment in Turkey. With the help of the loan, now the EU-funded grant component reaches businesses.

The grant component of the “Formal Employment Creation Project” was launched at an online opening ceremony on Dec. 14.

The grant project is financed by the European Union with a budget of 80 million euros under the framework of the EU Facility for Refugees in Turkey.

The World Bank administers the grant funds and provides technical support to TKYB.

Funds secured will be available for small and medium-sized enterprises (SMEs) and larger enterprises in the form of grants and technical assistance so as to ensure economical added value.

Within the scope of the grant program, SMEs and larger enterprises endeavoring to expand their businesses as well as to increase registered employment can benefit from the grant support between 15,000 to 300,000 Euros depending on the size of the project that they apply for.

SMEs and larger enterprises operating in 24 provinces of Turkey that have been most affected by the influx of refugees, will benefit from the grant scheme.

The grant will cover 50 percent ot 70 percent of project costs of the enterprises. The program will promote and encourage the employment of refugees and women in addition to Turkish citizens.

Small businesses with up to 49 employees will benefit from the grant support between 15,000 euros to 45,000 euros. Grant support will be between 25,000 euros to 125,000 euros for medium-sized enterprises with 50-249 employees and between 40,00 euros to 300,000 euros for larger enterprises with more than 250 employees.

Enterprises found eligible to receive the financial support under the grant scheme will be expected to ensure that at least half of their newly employed staff is comprised of Turkish citizens and also sustain the employment for 18 months.