KOSGEB Support Program: Textile, Apparel, Leather, and Furniture Sectors

Dear Sir/Madam,

 The Small and Medium Enterprises Development Organization of Türkiye (KOSGEB) has launched a new support program for 2026 aimed at encouraging businesses operating in labor-intensive manufacturing sectors to maintain their employment levels.

 This circular has been prepared for general informational purposes and is presented for the consideration of all enterprises operating in the relevant sectors. 

The program covers enterprises engaged in the manufacture of textile products, wearing apparel, leather and related products, furniture manufacturing, as well as denim and accessory production (buttons, zippers, snaps, etc.).

 The support mechanism is structured under two alternative components. Enterprises may benefit from only one of the following:

 · Performance (Employment Protection) Support 

· Financing (Credit-Backed) Support 

1. Performance (Employment Protection) Support

 Under the program, enterprises that maintain in 2026 the average premium day numbers of November and December 2025 will be eligible for a non-repayable support of TRY 3,500 per insured employee per month, calculated over 30 premium days. 

The support amount is not paid directly in cash to the enterprise; instead, it is offset against Social Security Institution (SGK) premium liabilities and/or tax liabilities. The maximum support ceiling has been calculated based on 249 employees and 360 premium days, resulting in a maximum total support amount of TRY 10,458,000 per enterprise. 

To benefit from the support, the enterprise must: 

· Have an up-to-date declaration registered in the KOSGEB database, 

· Maintain in 2026 the average premium day number of November–December 2025, 

· Have SGK and tax records suitable for offsetting procedures.

1. Financing (Credit) Support

 Within the scope of the program, enterprises may utilize loans through contracted banks.

 · Maximum loan amount: TRY 50,000,000 

· Utilization period: Single disbursement by the end of June 2026 

· Guarantee institutions:

 o Kredi Garanti Fonu A.Ş. 

o Katılım Finans Kefalet A.Ş.

 o İhracatı Geliştirme A.Ş.

 The financing component aims to strengthen collateral structures and facilitate enterprises’ access to funding.

 It is important to note that enterprises cannot benefit from both performance support and financing support simultaneously; only one option may be selected.

1. Termination of the Program and Important Considerations

 The program will be terminated and pending support claims will be cancelled in the event of: 

· Liquidation of the enterprise, 

· Closure of operations,

 · Transfer of the enterprise, 

· Merger with another entity.

 Failure to maintain the required employment levels may also result in loss of eligibility. 

1. Evaluation Within this framework, enterprises operating in sectors with significant personnel costs are advised to: 

· Review their November–December 2025 average premium day numbers, 

· Structure their 2026 employment planning accordingly,

 · Compare performance support and financing support alternatives from both cost and cash-flow perspectives. Yours sincerely.