The new financing program launched by the government on July 15th could bring about a paradigm shift for Hungarian small businesses. Interest-free working capital loans are now available under the SME Technology Plus Loan Program, which is expected to provide assistance to 4,000-4,500 domestic businesses from a budget of HUF 70 billion.

The program is unique in that it is completely interest-free and primarily serves to finance daily operating costs. Businesses can apply for an amount between HUF 1-20 million, with a term of 7 months to 6 years. The purpose of the support is to cover inventory purchases, payroll costs and utility fees, which are particularly important in the current economic environment.

Regional development is given special emphasis: 65 percent of the HUF 70 billion budget will go to businesses in the four least developed regions – Southern Great Plain, Southern Transdanubia, Northern Great Plain and Northern Hungary. This approach helps economic convergence and reduce regional disparities.

The application conditions are favorable: primarily rural companies with fewer than 50 employees and at least one completed business year can apply. The loan is disbursed in a lump sum, as an advance, and there are 12 months for settlement. Applications can be submitted to the partner banks of the Hungarian Development Bank until December 31, 2025.