KOSGEB Business Development Support 2026: 80% Repayable Funding for Software

KOSGEB business development support targets the biggest problem a young manufacturing or software company faces while growing: financing investment. KOSGEB covers most of what you spend on items like machinery, software, design and marketing, and you repay that amount interest-free on a fixed schedule. In short, it is not a grant, but it is a far more flexible financing tool than a bank loan. If you run a business registered in Türkiye, or you are a foreign company working with a Turkish manufacturer or agency, this is one of the most relevant public funding routes for digital projects.

In this article we explain the programme's cap, how repayment works, and the age and NACE code requirements in plain language. We then use a fictional furniture manufacturer in İnegöl (Türkiye's best-known furniture hub, in Bursa province) to show how CRM, dealer portal, e-commerce and website investments can be written into a project budget. The final sections cover what stands out in the evaluation panel's scoring, cash flow planning and a preparation checklist for the next call.

One note: this article is for information only. Regulations, rates and timelines can be updated by KOSGEB, and rules for SME funding differ by country. For definitive information, rely on the programme implementation principles and call announcement on KOSGEB's official website.

What is KOSGEB business development support and who can apply?

The KOSGEB Entrepreneur Support Programme has two main parts: Business Start-up Support for people setting up a new business, and Business Development Support for young businesses that are already established and operating. The development side is awarded in return for a project that grows the company's capacity, product or market. So telling KOSGEB "we want to buy a machine" is not enough; you need to submit a business plan that says "with this investment we will reach this goal".

What does the 0-3 year age requirement mean?

The programme targets businesses that have not yet passed a certain period since their founding date. In the renewed framework this has been announced as 0-3 years. The founding date is usually taken as the tax registration or trade registry date; confirm in the call text which date applies and whether the period is calculated to the application date or the call's closing date. For businesses close to the limit, a few days can make an application invalid.

NACE code requirement: manufacturing and IT

The second critical condition is the field of activity. Business development support is mainly open to manufacturing (NACE Section C) and IT businesses (relevant sub-codes of NACE Section J). Furniture manufacturing, for example, falls under code 31 within manufacturing. Check whether the main activity code on your Turkish tax certificate is on the programme's accepted list. If your main code is trade and a secondary code is manufacturing, the case may be assessed differently depending on the call; the safest route is to ask your local KOSGEB office before applying.

How do the 2.25 million TL cap and 80% repayable model work?

The phrase "KOSGEB 2.25 million TL support" refers to the maximum amount available per project. It does not mean every business receives this amount. The support rate is applied to the eligible costs in the approved project budget, and the total cannot exceed this ceiling.

The length of the grace period and the number of instalments are set out in the call. These two figures form the basis of your cash plan, so clarify them before preparing the application file.

KOSGEB business development support eligibility requirements and timeline

KOSGEB does not run this programme as a permanently open application; it works through call periods. When a call opens there is a set application window, followed by evaluation and committee stages. To avoid missing the timeline, follow KOSGEB announcements and the KOSGEB system accessed via e-Devlet, Türkiye's e-government portal, on a regular basis.

1. KOSGEB registration and SME declaration: Your business must be registered in the system with an up-to-date declaration.
2. Eligibility check: Founding date, NACE code, tax and social security (SGK) debt status, and any call-specific criteria.
3. Project preparation: Purpose, goals, activity plan, cost items and supplier quotes.
4. Online application: Uploading the project to the system within the call period.
5. Evaluation: Preliminary review, followed by a project presentation and committee or panel evaluation.
6. Contract and implementation: Spending within the approved budget and submitting payment requests.
7. Monitoring and repayment: Post-project reporting and paying the instalments.

How to budget digital investments under software and service lines

The most common question about KOSGEB software support is which heading a website or CRM belongs under. The general logic: licences, packaged software and custom-built software count as software costs, while services such as design, marketing and consultancy fall under service procurement. Line names and minimum thresholds can vary by call, so it matters that your quotes are broken down accordingly.

Example: a 2-year-old furniture manufacturer in İnegöl

Our fictional business makes sofa sets and bedroom suites in İnegöl. Most of its sales come through dealers, orders are tracked on WhatsApp and Excel, and the website works only as a catalogue. The project's goal: move dealer orders online, speed up the quoting process and start selling online to retail customers.

The key point is that every line is tied to a goal in the project. To explain why the dealer portal is needed, briefly describe the current order flow, list the problems and state what will change with the portal using measurable targets. If you want to know how a dealer portal works, read our B2B dealer portal article, and for the basics of customer tracking see what is CRM.

On price we can only give a rough indication, based on what we observe in the Turkish market: a custom dealer portal and CRM project can be priced anywhere from several hundred thousand TL up to around a million TL, depending on scope. This is not a fixed price; the number of modules, integrations and users changes the figure significantly. It is wise to get at least two detailed quotes before writing it into the project.

Project tips that stand out in panel scoring

Evaluation committees read a lot of projects. To make yours memorable, build a clear and consistent story instead of decorative sentences.

• Start with the problem: Instead of "we want to digitalise", write a concrete finding such as "dealer orders are taken by phone, and we suffer wrong shipments and delays".
• Set measurable targets: Choose trackable indicators such as order processing time, number of new dealers, number of export countries or headcount growth. Base targets on your own data and do not exaggerate.
• Match budget to goals: Every cost line should serve at least one goal. A line that cannot be linked to a goal will be seen as a weak point.
• A realistic timeline: Be honest about software development, testing and training periods. Claiming everything will be finished in the first month does not inspire confidence.
• Introduce the team: State who will manage the project and who will use the software. It matters that the business owner can answer questions during the presentation.
• Sustainability: Show how you will cover maintenance, hosting and update costs once the project ends.

A good project file is one that convinces you, not KOSGEB. If you are describing an investment you would want to make even without support, you are on the right track.

Repayment and cash flow planning

The most common mistake with the KOSGEB repayable support model is planning it as "free money". In reality there are two separate cash burdens: the spending leaves your account first during implementation, and the instalments must be paid after the project.

1. Pre-financing: You pay the full invoice and VAT. The support arrives after your payment request is reviewed. Set aside working capital for the time in between.
2. Your contribution: The unsupported share and VAT are a permanent cost to you.
3. Grace period: This is the time you are given for the investment to start generating revenue. Aim to see the sales impact of the e-commerce site or dealer portal during this period.
4. Instalment period: Put monthly or periodic instalments into your income statement. In seasonal sectors, know in advance which instalments fall in low-season months.

Use a simple spreadsheet to show spending, expected support inflows and repayment instalments month by month. It works as an early warning system for you and proves to evaluators that your project is realistic. We recommend preparing it with your accountant.

Ineligible costs and common mistakes

Each call has its own list, but in KOSGEB practice the following costs are usually excluded. Check the implementation principles for the definitive list.

• VAT and similar taxes
• Purchases from partners, close relatives or related companies
• Spending made before project approval
• Routine operating costs such as rent, electricity and water
• General spending that cannot be linked to the project
• Payments with missing documents or invoices dated outside the project period

Common mistakes include a software quote arriving as a single line saying "web software", payments made in cash, and project changes implemented without notifying KOSGEB. Make payments by bank transfer and write the invoice number in the description. If you are looking for support focused only on a website, our KOSGEB website grant article compares the different options.

Preparation checklist for the next call

When a call opens, the application window can be short. Complete this list now and you can upload the file without panic.

• Have you calculated your founding date and until when you meet the 0-3 year requirement?
• Is the NACE code on your tax certificate within manufacturing or IT?
• Are your KOSGEB registration and SME declaration up to date?
• Are you free of tax and social security debt, or is any debt restructured?
• Have you described your current processes and problems in writing?
• Have you set measurable targets and baseline values?
• Have you received at least two itemised quotes for software and services?
• Is your cash plan covering pre-financing and the repayment period ready?
• Have you decided who will speak at the project presentation?
• Have you documented the state of your current website, its gaps and what needs improving?

Do not skip the last item. In a digitalisation project, showing how your current site performs on speed, mobile usability and SEO strengthens the case for investment. You can use our free Site X-Ray website analysis tool for this and attach the report to your project file.

As a team working on dealer portal, CRM and e-commerce projects in the furniture and manufacturing sectors, the situation we see most often at Fietto Creative is this: the technical side of the project is ready, but the goals and the budget are not connected. If you need help matching budget lines to goals, our custom software service page gives an idea of scope and process.

Frequently asked questions