Government to support SME capacity expansions

The government has called a tender with an allocation of 13.7 billion forints (EUR 38m) to support micro-, small and medium-sized businesses increasing headcount and expanding production capacities, Innovation and Technology Ministry State Secretary Sándor Bodó said on Monday.

The grant will be available to SMEs operating in Hungary’s less developed regions, outside of Budapest and Pest county, he said. To be eligible, applicants have to undertake to increase headcount by at least three and at most 25 at their existing or newly established base compared to August, the state secretary said.

Companies can apply for a maximum of 4 million forints in subsidies per employee, Bodó said.

Wage costs of newly hired employees will be financed for eight months but the company will have to undertake to employ these workers for another eight months. Businesses can spend an amount equalling 30 percent of wage costs on purchases of assets and immaterial goods, he added.

The programme can help 4,000 jobseekers find employment, Bodó said.

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