KOSGEB SME Digital Transformation Support Program: Requirements and Application

For businesses looking to make a technological leap in the manufacturing sector, KOSGEB's SME Digital Transformation Support Program opens the doors of modern industry. Offering businesses a wide financing range from 1 million TL to 20 million TL, this program also covers a major portion of the interest burden to minimize financing costs.

Setting a strategic roadmap with the digital transformation/maturity report, which is the cornerstone of the application process, the program paves the way for sustainable growth with a 24-month implementation period and up to 36 months maturity options.

📌 Quick Look: SME Digital Transformation Support Program

What is the KOSGEB SME Digital Transformation Support Program?

The SME Digital Transformation Support Program is a financing support model that enables businesses operating in the manufacturing industry to modernize their production processes with digital technologies. This program aims not only to help businesses purchase technology, but also to bring their productivity and competitiveness up to international standards.

The core workflow and key features of the program are grouped into three main areas:

1. Financing Model and Interest Support

The program is structured on credit interest support rather than direct cash grants. Businesses secure loans through banks that have signed protocols with KOSGEB (such as İş Bankası and TEB). KOSGEB then covers a significant portion of the interest cost of this loan (up to the designated support points) as non-refundable. Thus, the business gains access to an investment loan with very low costs.

2. Strategic Roadmap: Digital Maturity Assessment

The most critical feature that distinguishes this program from other KOSGEB supports is that applications are based on a scientific foundation. Instead of businesses making random investments, they must obtain a "Digital Maturity Assessment Report" prepared by authorized institutions such as TÜSSİDE (DDX), MEXT, or İHKİB. This report analyzes the business's current state and scientifically outlines which digitalization steps (ERP, IoT, AI, etc.) should be taken.

3. Scope of Support and Investment Items

Purchases made under the program must be "brand new" (unused). Second-hand equipment is not supported. The main support items include:

• Hardware and Infrastructure: Servers, sensors, industrial robots, and network devices.

• Software: Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), manufacturing execution systems (MES), and data analytics tools.

• Services: Consulting services for software deployment and integration processes.

In summary: This program is a "smart" incentive mechanism that both eases the financial burden of manufacturers in their digitalization journey and ensures they invest in the right technology.

In this section of the article prepared for "Üstad", let's enrich the technical information you provided with a slightly more visionary perspective to help the reader understand the answer to the question, "Why should I join this program?"

Here is the content detailing the program's objective in professional language:

What is the Objective of the Program?

The core philosophy of the KOSGEB SME Digital Transformation Support Program is not just to finance machinery or software purchases, but to prepare SMEs, which form the backbone of Turkish industry, for the "Production Standards of the Future".

The primary objectives of the program can be summarized under these three main headings:

1. Boosting Global Competitiveness

In line with our national and international economic targets, the goal is to enable domestic businesses to speak the same technological language as their global competitors. A digitized SME becomes a standard-setting player not only in the local market but also in export channels.

2. Efficiency and Workflow Optimization

The program aims to make business processes more transparent, measurable, and error-free. By transitioning manually tracked workflows to digital systems:

• Production costs are reduced,

• Resource waste is minimized,

• Internal operational efficiency is maximized.

3. Increasing the Share of Added Value in the Economy

One of the main focus areas of the program is to increase the share of small and medium-sized enterprises in the economy qualitatively rather than quantitatively. A business that has completed its digital transformation moves from low-yield production to a "Smart Manufacturing" model, multiplying the value it offers to the national economy.

Note from Üstad: This program aims to integrate your business not only into today's world, but into the digital ecosystem that Industry 4.0 and beyond will bring. That means this is not an expense, but a strategic signature on the future.

What are the Application Requirements?

To benefit from the opportunities of the KOSGEB SME Digital Transformation Support Program, businesses must meet specific sectoral, financial, and technical criteria. Please ensure you satisfy the following conditions before proceeding with the application process:

1. Sector and Scale Condition

• Manufacturing Sector Focus: The fundamental requirement is that your business must operate in the C-Manufacturing sector according to its NACE code.

• Business Class: The program is open only to Small and Medium-Sized Enterprises (SMEs).

2. KOSGEB Registration and Database Status

• Your business must be registered and active in the KOSGEB Database.

• The KOSGEB Business Declaration containing the most up-to-date financial data must be fully verified and approved.

3. Digital Maturity Report (The Most Critical Requirement)

No random investment plan is accepted in this program. Before applying, you must have received services from consultants authorized by TÜSSİDE (DDX), MEXT, or İHKİB, and have one of the following reports in hand:

• TÜSSİDE – DDX Digital Transformation Assessment Report

• MEXT/İHKİB – SIRI Digital Maturity Assessment Report

4. Financial Eligibility Criteria

To prove your company's economic sustainability, it is expected to satisfy at least one of these two financial conditions:

• A positive aggregate "Operating Profit" for the last 3 (three) fiscal years,

• Or a non-negative **"Total Equity"** in the last fiscal year.

Important Note: If your equity is in the negative on your financial statements, or if you have no operating profit in the sum of the last three years, it would be beneficial to review your financial structure before applying for the program.

Understood, let's crown the topic with financial details and the application process to turn it into a complete guide for the reader. Here is the continuation of the article:

Support Amount, Maturity, and Financing Details

The most attractive aspect of this program is that it minimizes the cost of access to finance for SMEs. Consider these figures when planning your investment:

• Maximum Support Limit: A credit option between at least 1 million TL and a maximum of 20 million TL is offered per business.

• Maturity Structure: A maturity option of up to 36 months is provided so you can spread your investments over time.

• Program Duration: The implementation period of the projects under scope has been set at 24 months.

• Repayment: While the principal repayment of the credit is made by the business, a large portion of the interest/profit share burden is covered by KOSGEB.

Step-by-Step Application Process: How to Apply?

It is critical to follow this sequence to complete the process smoothly:

1. Preparation and Registration

First, make sure your information in the KOSGEB database and your SME declaration are up to date. If the information is outdated, the system will block your application.

2. Digital Maturity Assessment

If you haven't done so already, contact authorized bodies (TÜSSİDE, MEXT, or İHKİB) to get your Digital Maturity Assessment Report. This report will form the foundation of your project.

3. Online Application

Enter project details, report results, and your investment plan into the KOSGEB E-KOBİ system. Your application's alignment will be reviewed by KOSGEB specialists.

4. Bank Process and Approval

Businesses that receive pre-approval from KOSGEB apply to contracted banks with a credit request. With the bank's credit approval and KOSGEB's final decision, your digital transformation journey officially begins.

Final Advice from Üstad: Digital transformation is not just purchasing software, it's a cultural shift. Presenting a realistic investment plan focusing on the weaknesses revealed in your report will both increase your approval chances and add real value to your business.

SME Digital Transformation Support Items and Financial Limits

The expense items supported under the program and the financing limits allocated for these items are detailed below. Businesses can plan their investments within these limits and start the loan process through contracted banks.

Financing and Implementation Table

KOSGEB Contracted Banks & Support Points Explanation

Within the framework of the protocol signed with KOSGEB, you can submit your loan applications through the following banks:

• TEB (Türk Ekonomi Bankası A.Ş.)

• Türkiye İş Bankası A.Ş.

• Yapı ve Kredi Bankası A.Ş.

A suggestion for Üstad: Adding a quick note to the "Support Points" section could be helpful. This 20-point support represents the portion that will be deducted from the loan interest rate and is paid directly to the bank by KOSGEB (meaning the business is freed of the interest burden at this rate).

Legislation and Application Forms

To access updated implementation procedures, legislation details, and application forms for the program, you can visit the official link

here:

👉 Click Here for KOSGEB SME Digital Transformation Support Program Details

❓ Frequently Asked Questions (FAQ)

1. Is there grant support under this program? 

No, this program is not a direct grant (non-refundable cash support) program. However, up to 20 percentage points of the interest or profit share cost of the loan used is covered by KOSGEB. This provides a serious financial advantage for the business.

2. Is the purchase of second-hand machinery supported? 

No. Machinery, equipment, and hardware to be purchased within the scope of the program must be brand new.

3. Can the Digital Maturity Report be obtained from anywhere? 

No. Only reports received through authorized institutions TÜSSİDE (DDX), MEXT, and İHKİB are valid. Having this report is a prerequisite for application.

4. Is there a time constraint for applications? 

The program is open for continuous application. However, since evaluations are made within budget limits and current protocols, businesses with ready digital maturity reports are recommended to apply without losing time.

5. Which banks can I use for the loan? 

Currently, the financial institutions that have signed protocols are Türkiye İş Bankası, TEB (Türk Ekonomi Bankası), and Yapı Kredi Bankası.