“Despite economic difficulties, the Hungarian government continues to stand by its support programs,” Viktor Orban told Kossuth Radio this morning. As an example, he cited the Demjan Sandor Program, which assists small and medium enterprises (SMEs).
This initiative is far from being at risk—in fact, it’s booming. Richard Szabados, state secretary for SME Development and Technology at the Ministry of National Economy, recently announced that:
Thousands of companies have applied for each sub-program under the Demjan Sandor Program.
In the "1+1 Investment Stimulus" sub-program, the application period has already closed, and the first 300 winners will be notified within the next two weeks. Applications exceeded the available funds nearly threefold. While 48 billion forints (about 119 million euros) were available, requests amounted to 137 billion forints (about 340 million euros). The program’s component aimed at improving business websites is also popular: for the 9 billion forint (over 22 million euros) budget, 11 billion forints (over 27 million euros) in requests have already been submitted.
The program, which also includes non-repayable grants, received 300 applications on its very first day. Its purpose is to offer government assistance, financing options and relief from interest burdens for businesses. The government retains the right to continuously adjust the terms of funding based on feedback. The zero-interest loan program is especially attractive in the current high-interest environment.
Szabados also revealed that in the program’s newest component—targeting the smallest enterprises—businesses can apply for support up to 30 million forints (over 74 thousand euros) each.
The Demjan Sandor Program consists of a support package with 8+1 components, offering a total of 1.4 trillion forints (about 3.5 billion euros) in aid from the Hungarian budget and EU co-financing. All sub-programs will be announced by summer, and in the second half of the year, there is a strong chance that investments will begin and economic growth will be triggered.
