On 17 June 2022, the European Commission approved €226 million in state aid for Hungary’s SMEs.
Approved under the Temporary Crisis Framework, this support is available to Hungarian SMEs across all sectors except credit and finance, and aims to help those companies suffering both liquidity and sanction-related shortages due to the war in Ukraine.
The aid programme is for guarantees on new loans and will be administered by the Rural Credit Guarantee Foundation AVHGA, with the aim of ensuring liquidity is available for companies in need.
Eligible firms will be entitled to receive loans with a State guarantee for up to 90% of the loan. The loans will mature in six years and will be granted no later than 31 December 2022.
The maximum amount per beneficiary will be equal to 15% of the firms average total annual turnover from the last three accounting periods, or equal to 50% of the energy costs incurred for the 12 month period up to the application for aid.
In addition, for applicants from sectors heavily affected by the war in Ukraine, the amount of the loan may be increased to cover liquidity needs for up to 12 months.
More information on the specifics of the programme can be found HERE.