Interest Support and Interest-Free Credit Support
Interest support is the financial support that requires the Agency to cover the interest expenses to be paid in return for the loans to be obtained from the related intermediary institutions for the projects specified in the application guide.
Interest-free credit support is the financial support the agency will provide by providing interest-free loans to projects that comply with the reference guide.
Related intermediation, interest subsidy and interest-free loan support applications, Small and Medium Industry Development and Support Administration, Credit Guarantee Fund, Development Bank of Turkey, other banks and financial agencies such as the establishment of agreements with institutions and organizations represent.
Under no circumstances can payments related to interest support and interest-free loan support be made directly to the beneficiary by the Agency. In this context, the payments to be made from the agency to the intermediary institution and from the intermediary institution to the beneficiary are carried out through the relevant intermediary institutions within the framework of the protocol provisions made between the Agency and the related intermediary institution, taking into account such issues as the financial structure of the agency, the resource use efficiency and the proposal of the intermediary institution.
2. Payback Times
In interest-free loan support programs, the beneficiary is granted a grace period of at least six months (6 months) from the date of the contract and repayments are completed within three years (3 years) of the contract date.
In interest support programs, the maturity of the interest support to be given is determined within the framework of the protocol provisions to be made between the Agency and the related intermediary institution, not exceeding four years (4 years).
In interest support programs, the repayment periods of the loan are determined according to the terms of the contract between the beneficiary and the intermediary financial institution.
3. Follow-up of the Support Process
An electronic system is established by the Agency for the close monitoring of the process from loan application to the completion of the project in interest support and interest-free loan support applications. The necessary information is recorded in this system during the actual use of the loan. Through this system, the payments and approval notifications made by the relevant brokerage firm are monitored. The party responsible for the installation and operation of the system is determined in the protocol to be made.
4. Monitoring and Reporting
Within the scope of interest support, the monitoring of the project is technically responsible for the Agency and financially the intermediary institution. In this context, the Agency or brokerage firm checks the compliance of the activities to the contract according to its interest.
In the interest-free loan support, the payments of the beneficiary to the intermediary financial institutions will be monitored by the Agency. Detailed provisions regarding the cessation and cancellation of the support in case of disruption of the beneficiary's repayments and in case of contradiction to other agreements are specified in the protocol.
In monitoring the reimbursements, the penalties, interests and similar costs that will arise due to the deficiencies and negligence of the beneficiary and the persons involved in the project are not counted from the project eligible costs and cannot be accounted for in the project accounts. The principal allocation, follow-up and collection responsibilities of the loan belong to intermediary institutions. Intermediary institutions cannot make requests from the development agency under any name such as expenses and commissions in these processes.
The commission and expenses paid by the applicants, who request bail from the Credit Guarantee Fund and the Interest-Free Credit Support, in return for the services provided by the fund, are not counted as the project eligible costs.
The Agency may request information and reports about the project from the relevant intermediary institution and the beneficiary, if it deems necessary. In all reports made to the Agency, the officially signed and written reports submitted or sent in writing and the dates of their transfer to the Agency records are respected. In addition, the Agency requests the relevant intermediary institution to process up-to-date information on the supported projects into the electronic system to be installed at regular intervals, and checks or keeps the validity and accuracy of these records at appropriate intervals.
5. Eligibility Criteria
In order to accelerate regional development and realize the regional plan and programs, the Agency specifies the criteria such as its field of activity, sector, business scale, place of operation and employment size in detail.
Eligibility of the Applicant
The criteria determined for the eligibility of the applicant and its partners within the scope of the project call for proposals are also valid for those who will benefit from interest-free loan support and interest support. The agency may set additional criteria for the applicant and its partners in order to ensure the focus, according to the conditions of the region, the objectives and priorities of the regional plan and programs, provided that it is specified in the application guide.
The applicant's credit eligibility status is once again checked by the brokerage firm before the contract is signed.
Eligibility of Projects
The technical suitability of the projects that will benefit from interest-free credit support and interest support are determined by determining the sectors and subjects that are included in the regional plans and programs, and the Agency's work program and which are considered to be priorities for the economic and social development of the region.
Projects related to the sectors listed below cannot benefit from these supports;
Tobacco production, except for tobacco production, which is contractually produced by farmers and purchased by tobacco buyers,
Tobacco product manufacturers and tobacco processing plants,
Production of beverages that do not comply with the Turkish Food Codex Soft Drinks Communiqué,
Operation of any company included in the game of chance,
Activities involving currency and financial speculations; stock market investments,
Real estate investments.
The following projects and activities cannot be supported by agencies within the scope of interest-free loan support and interest support:
Political or ethnic content projects and activities,
Projects and activities that are against the law, general health and general moral understanding of the society.
6. Project Applications and Evaluation Process
Interest-free credit support and interest support are used by the relevant brokerage firms and within the framework of the application protocols to be signed.
The beneficiary submits the applications regarding interest support and interest-free credit support to the relevant agency together with the credit eligibility (credit acceptance) document they will receive from the banks announced in the application guide. In addition, “Technical Compliance Form” (ANNEX F) is filled in as a basis for technical evaluation to be carried out by the Agency.
Applications for applicants who do not have signed and stamped loan suitability letter among the application documents or whose loan request has not yet been finalized, are rejected at the preliminary examination stage. Instead of the credit acceptance letter, the credit eligibility requests of the applicants who apply to the agency with the credit eligibility application letter from the related intermediary institution are concluded within the period specified in the application protocols, and those whose loan request is deemed appropriate are notified to the agency. Applications whose credit eligibility requests are negative are not taken into the independent evaluation process and are rejected.
The creditworthiness assessment of the beneficiaries' financial management risks and capacities is made by the relevant intermediary institutions within the framework of their own legislation and practices. The technical evaluation of the projects in terms of their suitability to plans and programs and other development policies and tools and their contribution to local development is done within the framework of the evaluation process specified in the relevant Agency legislation and in any case by the relevant Agency.