A new financing opportunity may become available to small and medium-sized enterprises (SMEs) planning investments in Baranya, Heves and Borsod-Abaúj-Zemplén counties. The KEHOP Plusz-5.1.0-26 Combined Loan Programme, with a total budget of HUF 31 billion, aims to support technological transformation, energy efficiency improvements and investments related to the circular economy. Businesses may apply for combined financing ranging from HUF 5 million to HUF 500 million, of which up to 50% may be provided as a non-repayable grant.
Important: KEHOP Plusz-5.1.0-26 is currently a draft call for proposals. The final eligibility criteria, funding amounts and application deadlines may change before the programme is officially launched.
KEHOP Plusz-5.1.0-26: HUF 31 Billion to Support the Green Transition of Businesses
The KEHOP Plusz-5.1.0-26 Combined Loan Programme is a financing scheme linked to the Just Transition Fund (JTF), designed to support economic and energy transition in designated regions of Hungary.
The programme is expected to launch with a total budget of HUF 31 billion, of which HUF 11 billion will be allocated to investment projects in Baranya County, while HUF 20 billion will be available for developments in Borsod-Abaúj-Zemplén and Heves counties.
The programme supports two main investment areas:
- Technological transformation and energy efficiency: Reducing businesses’ energy consumption and greenhouse gas emissions.
- Economic diversification: Manufacturing clean technologies, introducing circular economy solutions and developing new green economic activities.
One of the programme’s key advantages is that businesses may receive a non-repayable grant alongside a 0% interest investment loan in Hungary
Up to HUF 500 Million in Investment Loan in Hungary with a 50% Non-Repayable Grant
Under KEHOP Plusz-5.1.0-26, businesses may apply for combined financing of between HUF 5 million and HUF 500 million for either of the two investment objectives.
Up to 50% of the total financing amount may be provided as a non-repayable grant, with the remaining portion financed through an interest-free investment loan.
For example, a financing package of HUF 200 million could theoretically consist of HUF 100 million in non-repayable funding and HUF 100 million in interest-free investment financing.
However, the maximum 50% grant share is not automatically available to every applicant. The actual grant amount depends on the applicable State aid regulations, the size of the business and the type of investment. The aid element of the preferential loan must also be taken into account when calculating the applicable aid intensity.
Businesses must provide at least 10% of the eligible project costs from their own resources. In addition, the total financing amount may not exceed 15 times the company’s operating profit recorded in its most recent fully closed financial year.
What Types of Investments Are Eligible Under KEHOP Plusz-5.1.0-26?
Energy Efficiency Improvements and Technological Transformation
The programme’s first investment objective focuses on reducing energy consumption and greenhouse gas emissions.
Energy efficiency investments must achieve at least a 30% reduction in primary energy consumption. Similarly, technological transformation projects aimed at reducing greenhouse gas emissions must achieve at least a 30% reduction in emissions.
Eligible investments may include:
- Purchasing energy-efficient production machinery and equipment;
- Modernising production technologies;
- Improving building insulation and replacing windows and doors;
- Upgrading heating, cooling and ventilation systems;
- Installing heat pump systems;
- Introducing energy management systems and smart meters;
- Electrifying production processes and implementing lower-emission technologies.
Renewable electricity generation systems and energy storage solutions may also be included as supplementary project components, up to 20% of total eligible project costs, subject to the conditions specified in the call for proposals.
However, equipment and systems that use fossil fuels are not eligible for financing.
Circular Economy and Business Diversification
The programme’s second investment objective supports the diversification of business activities, particularly investments related to clean technologies and the circular economy.
Eligible developments may include:
- Purchasing machinery and equipment for manufacturing clean and net-zero technologies;
- Establishing production capacities for recycling, repair and refurbishment activities;
- Developing waste processing and material recovery technologies;
- Introducing circular product design and manufacturing processes;
- Implementing related infrastructure investments and building developments.
Job retention is a mandatory requirement for projects under the diversification objective. If a company fails to meet its agreed job retention target, the non-repayable grant component may be converted into an interest-free loan.
Who Can Apply for Financing Under the KEHOP Plusz-5.1.0-26 Combined Loan Programme?
The investment financing may be available to small and medium-sized enterprises (SMEs) that have completed at least one full financial year and meet the programme’s financial and eligibility requirements.
One of the programme’s most important geographical conditions is that the investment must be implemented in one of the following Hungarian counties:
- Baranya County
- Borsod-Abaúj-Zemplén County
- Heves County
The company’s registered headquarters do not necessarily need to be located in one of these counties. For example, a company headquartered in Budapest may also qualify if the investment is implemented at a duly registered business site in one of the three designated counties.
Interest-Free Financing with a Repayment Term of Up to 10 Years
The KEHOP Plusz-5.1.0-26 Combined Loan Programme may offer favourable financing conditions for eligible businesses.
This investment loan in Hungary carries a 0% annual interest rate throughout its entire term. No loan management fees, commitment fees or early repayment fees are charged under the programme.
Businesses have up to 24 months from the date of signing the loan agreement to complete their projects.
The loan repayment term depends on the type of investment being financed. For building energy efficiency projects and certain property developments, a repayment term of up to 120 months, equivalent to 10 years, may be available.
For the purchase of tangible assets, supplier advance payments may also be available, subject to the detailed procedural requirements, up to 50% of the total financing amount.
When Can Applications Be Submitted?
According to the current draft call for proposals, the planned application period for the KEHOP Plusz-5.1.0-26 Combined Loan Programme is:
1 January 2027 – 31 October 2027, or until the available funding is exhausted.
Financing applications will be submitted through authorised intermediaries within the MFB Pont Plusz network.
Businesses are advised to begin preparing their investment projects well in advance, particularly where energy calculations, expert assessments or detailed technological planning are required.
However, specific rules apply to the commencement of investment activities. As a general rule, applications for investment financing must be submitted before work on the project begins.
Why Businesses Should Start Preparing for the KEHOP Plusz-5.1.0-26 Combined Loan Programme
The KEHOP Plusz-5.1.0-26 Combined Loan Programme could provide a significant financing opportunity for businesses planning energy efficiency investments, technological transformation or circular economy developments in Baranya, Heves or Borsod-Abaúj-Zemplén counties.
With combined financing of up to HUF 500 million, a 0% interest rate and a non-repayable grant component of up to 50%, the programme could create favourable conditions for implementing major business investments.
As the programme is currently still at the draft call for proposals stage, the final eligibility requirements and financing conditions remain subject to change.
Is your company planning an energy efficiency upgrade, technological transformation or green investment? Contact our expert team to assess your project’s preliminary eligibility, explore available financing opportunities and identify the key steps needed to prepare a successful application.
