Loans Up to 3.5 Million TL for Entrepreneurs with Debt in Turkey

Türkiye Introduces Subsidized Loans of Up to 3.5 Million TL for Entrepreneurs with Debt

New rules for state-subsidized loans for tradespeople and artisans came into effect in Türkiye on August 27, 2026. The changes are particularly important for entrepreneurs who have tax or social security contribution debts and previously could not access subsidized financing because of these obligations.

Important: Having outstanding tax or social security debt no longer automatically prevents an eligible entrepreneur from receiving a state-subsidized loan.

Who Can Use the New System?

The new system applies to tradespeople and artisans who previously could not access Treasury-supported investment and operating loans because of tax or social security debt.

Entrepreneurs with outstanding debts who meet the established requirements may now apply for financing. Part of the loan can be transferred directly to the relevant government institutions to settle eligible outstanding debts.

This means that outstanding debt is no longer an unconditional barrier to receiving state-supported business financing.

What Documents Are Required?

Applicants must provide documents issued no more than 15 days before the loan disbursement date. These documents must confirm that there are no overdue debts to the tax authorities or social security institution, or that existing debts have been restructured or placed under an approved installment plan.

If a debt has been restructured, the restructuring agreement must remain in good standing and must not have been breached.

Entrepreneurs who cannot fully meet these conditions are not necessarily excluded from the program. Under the loan agreement, a specified portion of the outstanding debt can be paid directly to the relevant government institutions.

Up to 300,000 TL of Debt Can Be Paid from the Loan

For tradespeople with tax or social security debts, the bank may initially transfer up to 25% of the state-subsidized loan amount directly to the relevant government institutions.

There is also a separate limit. Regardless of the total loan amount, the total payments made by the bank toward eligible debt cannot exceed 300,000 TL within one year.

Therefore, up to 300,000 TL of the loan can be used to settle eligible outstanding debt, provided that all applicable conditions are met.

Treasury to Provide a 25% Interest Discount

After the eligible debt has been paid, the remaining portion of the loan will be made available to the tradesperson or artisan.

In addition, the Treasury will provide a 25% discount on the interest payable on the debt. This mechanism is intended to help entrepreneurs address outstanding obligations while also securing financing for their ongoing business activities.

Interest Support Rates Have Also Changed

The new rules also modify the interest-rate subsidy levels for tradespeople and artisans who use the loan mechanism to settle outstanding debts.

• The previous 50% interest-rate reduction has been reduced to 40%.
• The previous 100% interest-rate reduction has been reduced to 80%.
• The previous 60% interest-rate reduction has been reduced to 48%.

Program Extended Until the End of 2027

The period during which tradespeople and artisans can use the subsidized loan mechanism has also been extended.

The previous deadline was December 31, 2026. Under the new rules, the deadline has been extended to December 31, 2027.

This gives eligible entrepreneurs an additional year to make use of the state-supported financing mechanism.

What Loan Amounts Are Available to Small Businesses?

The existing loan limits for tradespeople and artisans remain in place:

• Up to 1,500,000 TL for working capital needs.
• Up to 3,500,000 TL for investment loans intended for the purchase of commercial premises and vehicles.

The maximum investment loan can therefore reach 3.5 million TL.

What Has Changed for Entrepreneurs with Debt?

The main change is that tax or social security debt no longer completely blocks an entrepreneur from accessing state-subsidized financing.

Eligible borrowers can use part of the loan to settle outstanding obligations with government institutions, while the remaining funds can be used for working capital or investment purposes.

The new mechanism allows eligible entrepreneurs to address outstanding tax or social security obligations while obtaining financing for their businesses.

Note: Eligibility depends on the applicant's status, documentation, debt restructuring conditions and applicable loan limits. Entrepreneurs should confirm the current requirements with the relevant bank before applying.