SME Financing in Türkiye: Current Developments for 2024–2025
Small and medium-sized enterprises (SMEs) account for 99.7% of total enterprises in Türkiye, generate 70.5% of employment, 41.6% of production, and nearly 35% of exports. Despite their strategic role in the national economy, SMEs have faced significant financing constraints, particularly throughout 2024, as monetary tightening policies reshaped access to credit.
Economic Context of 2024
In 2024, the Central Bank of the Republic of Türkiye (CBRT) implemented aggressive monetary policies to curb inflation, resulting in tighter credit conditions. Consequently, loans extended to SMEs contracted by 7.4% in real terms, and their share in the total credit volume dropped to 26.7%. This decline disrupted growth and investment plans for many enterprises operating within Türkiye’s private sector ecosystem.
Active Support Mechanisms in 2025
To tackle the effects of restricted credit access, the Turkish government continues to roll out extensive financial support programs in 2025. These programs target productivity, innovation, and international competitiveness among SMEs.
KOSGEB Support and Capacity Development Programs
The Small and Medium Enterprises Development Organization (KOSGEB) remains the leading institution in implementing government-backed SME support programs. Among its flagship projects, the Capacity Development Support Program stands out for enhancing firms’ production capabilities, digital transformation, and supply chain efficiency.
- financing per enterprise: 1–20 million TL
- interest support: 20-point non-refundable interest or profit share subsidy
- maximum maturity: 36 months
- eligible expenses: machinery, molds, software, human resources, consultancy, and operational capital
By mid-2025, the first two application rounds received 2,729 submissions, of which 1,647 projects were approved with a total investment volume of 35.9 billion TL and a lending capacity of 25.5 billion TL.
Additional KOSGEB Programs in 2025
- business development support: covers costs related to training, consultancy, international business trips, and certification
- entrepreneurship support: aims at new business creation by financing registration, machinery, and office setup expenses
- R&D, product development, and innovation programs: designed for product and process improvement
- digital transformation support: provides up to 20 million TL for technology adoption
In 2025, KOSGEB aims to support 52,000 SMEs, contribute to the local production of 15 products, and finance environmental adaptation projects for over 1,100 enterprises.
TOBB “Nefes 2025” Credit Program
The Union of Chambers and Commodity Exchanges of Türkiye (TOBB) introduced the “Nefes 2025” Credit Program to facilitate liquidity for member SMEs. This initiative provides favorable credit conditions through partnering banks such as Ziraat Bank, Halkbank, Vakıfbank, and others.
| Feature | Details |
|---|---|
| Maximum loan amount | 2.5 million TL |
| Payment grace period | 6 months interest-free |
| Maximum maturity | 36 months |
| Interest rates | 38% (1–24 months), 37% (25–36 months) |
| KGF guarantee coverage | 80% |
Applicants must be members of a local chamber of commerce, industry chamber, or commodity exchange. Certain sectors, including agricultural credit cooperatives, money exchange offices, and factoring companies, remain ineligible.
Credit Guarantee Fund (KGF) Support
The Credit Guarantee Fund (KGF) continues to play a vital role in Türkiye’s SME financing structure. By providing guarantees to enterprises lacking sufficient collateral, KGF enhances credit accessibility and builds confidence between financial institutions and small businesses. This mechanism is particularly critical for newly established firms or international investors entering Türkiye’s market.
Digital Finance and Fintech-Based Solutions
Digital transformation is reshaping access to finance across Türkiye. Fintech platforms and alternative digital credit channels enable SMEs to obtain smaller, faster loans with simplified documentation. These digital solutions help bridge the financing gap, particularly for micro-enterprises and startups operating in technology-driven sectors.
Guidance for International Entrepreneurs
Foreign investors and entrepreneurs seeking to benefit from Türkiye’s SME financing programs must comply with specific regulatory and operational requirements.
Eligibility Criteria for KOSGEB Programs
- the enterprise must have been active for at least one year
- the company must be legally registered as a sole proprietorship or capital company under the Turkish Commercial Code
- entrepreneurs must complete the “Traditional” or “Advanced” Entrepreneurship Training sessions offered by KOSGEB
Interest Support System
The 20-point interest subsidy offered under KOSGEB programs considerably reduces financing costs for SMEs. In an environment of elevated borrowing rates, this mechanism substantially eases operational liquidity pressures, offering a vital relief for growing businesses.
Sectoral Focus Areas
Türkiye’s competitiveness and capacity development initiatives prioritize specific sectors. Enterprises in manufacturing, telecommunications, software, information services, and R&D fields benefit the most from these project-based support schemes.
Export Incentives for 2025
Türkiye promotes SME exports through multiple incentive frameworks supported by the Ministry of Trade. Current programs target market research, e-commerce integration, and international branding efforts. Export-oriented SMEs can leverage these tools to access emerging global markets and expand trade capacity.
Key Application Periods
- capacity development support program, first period: until February 28, 2025
- TÜBİTAK SME R&D support calls: open periodically throughout the year
Türkiye’s SME finance system in 2025 is marked by structural credit challenges but also by robust state-backed support mechanisms. Entrepreneurs from abroad who plan to establish or expand their businesses in Türkiye are encouraged to contact KOSGEB, KGF, or TOBB for current application guidelines and program-specific details. These institutional frameworks continue to strengthen the financial infrastructure that sustains sustainable entrepreneurial growth across Türkiye’s economy.
