Under the Ganz Ábrahám Programme, a total of HUF 270 billion in interest-free EU-backed financing will be made available to Hungarian micro, small and medium-sized enterprises (SMEs). The announced increase in funding will support both working capital financing and business investments. For larger development projects, the financing scheme offered under the National Champions Loan Programme (Nemzeti Bajnokok Hitelprogram), which combines interest-free loans with non-repayable grants, will play a key role.
The Ganz Ábrahám Programme aims to provide Hungarian businesses with access to development financing on favourable terms, ensuring that high market interest rates do not prevent companies from implementing their investment plans. Financing opportunities may be available to businesses in both Budapest and other regions of Hungary, subject to the specific eligibility requirements of each loan scheme.
The announced expansion of funding could be particularly beneficial for companies planning to purchase machinery, modernise their technology, expand production capacity, introduce digital solutions or invest in energy efficiency.
Ganz Ábrahám Programme: HUF 270 Billion in Interest-Free Financing for SMEs
The HUF 270 billion financing allocation announced under the Ganz Ábrahám Programme is intended to support the operations and investments of Hungarian businesses.
According to the announcement, the funding will assist companies in two main areas: financing the working capital required for day-to-day operations and implementing investments that strengthen long-term competitiveness.
A key advantage of these financing schemes is their 0% interest rate, which can significantly reduce borrowing costs for businesses. Interest-free financing can be particularly valuable for investments that take several years to generate a return.
The latest announcement primarily concerns an expansion of the financing resources available to businesses, specifically the extension of the National Champions Loan Programme. The programme previously had a total funding allocation of HUF 155.61 billion.
One of the main financing components of the Ganz Ábrahám Programme is this 0% interest investment loan, designed to support technological development, productivity improvements and stronger long-term competitiveness. Subject to meeting specific performance requirements, up to 45% of the financing amount may be converted into a non-repayable grant.
Financing may primarily be used for the following investment purposes:
- Expansion and conversion of existing properties
- Machinery purchases and technological modernisation
- Capacity expansion and production development
- Digitalisation and automation
- Energy efficiency and renewable energy investments
What Are the Terms of the National Champions Loan Programme?
The main terms of the National Champions Loan Programme, as previously established and not amended to date, are summarised below.
| Financing feature | Terms |
|---|---|
| Type of financing | Combination of an interest-free investment loan and a non-repayable grant |
| Financing amount | HUF 150 million – HUF 1 billion |
| Interest rate | 0% |
| Non-repayable grant | Up to 45% of the total financing amount, subject to the applicable conditions |
| Main investment objectives | Technological modernisation, productivity improvements and capacity expansion |
| Application submission | MFB Pont Plusz network |
Which Businesses Can Benefit from the Expanded Interest-Free Financing Under the Ganz Ábrahám Programme?
The announced financing opportunities may benefit a broad range of micro, small and medium-sized enterprises (SMEs).
Working capital loans are primarily intended to support the financing needs of day-to-day business operations, while investment loans provide funding for longer-term development projects.
The combined financing available for larger investments may be particularly attractive to companies seeking to strengthen their supplier relationships, increase their export capabilities or modernise their production technologies.
However, it is important to recognise that the financing opportunities offered under the Ganz Ábrahám Programme may not be available to all businesses on identical terms. Individual financing schemes may have different requirements concerning company size, investment location, financial history and eligible activities.
How Can Businesses Obtain a Non-Repayable Grant?
One of the most significant advantages of the National Champions Loan Programme associated with the Ganz Ábrahám Programme is that part of the interest-free loan may be converted into a non-repayable grant if the company meets specific performance conditions.
Businesses can qualify for a grant equivalent to 15% of the total financing amount for each of three separate performance criteria.
- Productivity improvement: The first criterion requires the company’s gross value added (GVA) per employee to grow at least 1.5 times as fast as Hungary’s GDP over the same period.
- Participation in an MGFÜ development programme: The second criterion can be met by participating in a development programme offered by the Hungarian Economic Development Agency (Magyar Gazdaságfejlesztési Ügynökség, MGFÜ), such as a supplier development or export development programme. Participation must be confirmed by an official certificate issued by MGFÜ.
- Higher investment share in ICT and/or renewable energy: The third criterion can be fulfilled if the proportion of the investment allocated to corporate information and communication technology (ICT) and/or renewable energy components exceeds the minimum mandatory level.
By meeting all three performance criteria, up to 45% of the total financing amount may be converted into a non-repayable grant, meaning that the business would only need to repay the remaining portion of the financing.
The conversion into a non-repayable grant is always conditional upon demonstrating that the required performance targets have been achieved and complying with the terms and conditions of the loan programme.
Is your company planning an investment, machinery purchase or capacity expansion? Our experts can help assess whether your proposed project qualifies for financing opportunities under the Ganz Ábrahám Programme and determine the conditions under which your business may benefit from the preferential financing available through the National Champions Loan Programme.
