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Govʼt raises limit of business development scheme to HUF 100 bln

The government decided to double the original limit of the "Hungarian High-tech and Green" scheme that supports technology upgrades by SMEs to HUF 100 billion as applications have been received for more than double the HUF 50 bln, Finance Minister Mihály Varga said after the meeting of the Economic Cabinet on Thursday, according to a report by state news wire MTI.

Mihály Varga (Image by Alexandros Michailidis / Shutterstock.com)

More than 4,500 companies have submitted applications for a combined HUF 105 bln in funding.

The government called tenders in the middle of May for a total of about HUF 52 bln money it rechannelled from EU programs earmarked for economic developments, as part of a broader plan to protect against the economic fallout from the coronavirus pandemic. 

The grant money may cover up to 70% of efficiency-boosting investment costs at microbusinesses and SMEs that pledge to keep at least 90% of their employees on payroll.

The funding in the scheme is available to SMEs in Budapest and Pest County - where GDP per capita is nearly one-and-a-half times the EU average - as well as in the rest of the country.

Application amounts are linked to headcount and stand at HUF 1.5 million per employee at businesses with one to nine people on payroll, at HUF 1 mln per employee at companies with a headcount between 10 and 49, and at HUF 500,000 per employee at companies with staff numbers between 50 and 249.