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Türkiye is reopening applications for its small and medium-sized enterprise (SME) financing program on Nov. 3, adding ₺50 billion ($1 billion) in new loans as authorities seek to ease businesses' access to credit.
The new round of the Nefes (meaning "Breath" in Turkish) program raises the maximum loan per company to ₺5 million from ₺3 million in the previous round. Businesses can borrow for up to 48 months, including a six-month grace period for principal repayments.
The initiative, coordinated by the Union of Chambers and Commodity Exchanges of Türkiye (TOBB), the Credit Guarantee Fund (KGF) and participating banks, aims to help SMEs meet their working capital needs.
The new loans will carry annual interest rates of 36% for maturities of up to 24 months and 34% for longer terms.
Companies that borrowed under earlier rounds in 2026 can also apply for additional financing, provided their combined borrowing under the program does not exceed ₺5 million.
TOBB President Rifat Hisarcıklıoğlu pointed to demand for the initial 2026 allocation as evidence of the need for further financing.
"The demand we have seen clearly shows how much the real sector needs the Nefes Kredisi program," Hisarcıklıoğlu said, announcing the additional ₺50 billion tranche and the higher borrowing limit.
He added that TOBB would continue supporting businesses as they maintain production, employment and exports.
The latest allocation comes after the program extended ₺45 billion in loans in the five months following its launch on June 8, according to TOBB. The new tranche will bring additional financing to businesses that have already drawn heavily on the available funds.
Türkiye has repeatedly expanded the program to channel financing to smaller businesses as tight monetary conditions have made bank loans harder to secure, particularly for manufacturers.
Despite retreating from levels above 60% in 2024, the weekly weighted-average interest rate on commercial loans, excluding corporate overdraft accounts and corporate credit cards, still hovers above 40%, keeping borrowing costs high for businesses.
In 2025, 61,000 companies benefited from the scheme, with total lending reaching ₺81 billion, according to TOBB.
For the 2026 round, the organization initially announced a ₺25 billion allocation in June, targeting a total lending volume of ₺100 billion through additional tranches during the year.
The program operates under KGF's Equity Guarantee Program, which supports lending to eligible businesses through participating financial institutions.
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