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What is a grant?

Jan 12, 2022

What is a grant?

What is a grant?

What is a grant?

Subject:

What is a grant?

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10 Min

Date:

Jan 12, 2022

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According to the Turkish Language Association, the term "grant" means donation; it refers to the money given by organizations, institutions, or various foundations to provide financial support to people in need or for the execution of a project or work. The money given as a grant is non-repayable. For this reason, there is no repayment for the financial support provided to individuals or companies. Grants have certain characteristics. We can list these characteristics as follows:
• Grant support is a type of donation. Therefore, it is non-repayable.
• A specific contract is signed between the person and institutions providing the grant and the person and institutions receiving the support. This contract stipulates the terms of the grant support and the responsibilities of the recipient.
• Grant support is supportive during the initiation and execution phase of many projects. In particular, the EU's grant programs are organized to reach those in need within the scope of these projects. However, these grant supports do not provide all the financial needs required for a project. The amount to be granted is determined by the relevant institution or organization.
• Only one grant support can be obtained for a project.
• No grant requests can be made for past projects.
Today, many grants are provided by institutions and organizations. The manner of giving grant support, conditions, and amounts are also carried out by institutions and organizations. Many institutions and organizations can provide grants, and the conditions for giving grants differ from one institution to another.
Grants are generally provided without distinction of gender. However, nowadays, grants are being implemented to increase female employment and to offer better living conditions for women. Many educated and uneducated women have managed to stand firmly on their own feet thanks to grant programs. Within the scope of these programs, women who own a project have applied for grants. The most common grant supports have generally been in the fields of agriculture and livestock. The reason for this is to ensure gender equality in society and to strengthen agriculture and livestock.

What Are Grant Programs?

The donations given to meet the financial support needed during the execution phase of a project are called grants. There are many grant programs that provide grant support. Various foundations, private institutions, development agencies, embassies, national organizations, the United Nations, and the European Union have various grant programs. Individuals or companies must apply in advance to these grant programs to benefit from this grant support. Those who wish to apply for grant programs can follow the websites of these institutions, fill out the grant application forms that open on specific dates, and submit their applications. To be able to receive grant support, applicants must fulfill certain conditions. Therefore, they must meet several requirements during the application process. These conditions vary according to the grant programs. Each program has its special conditions and particulars. Individuals or companies that meet the conditions determined by the institutions can benefit from grant support. The required conditions should be researched beforehand before applying for grant programs. Each grant support has different conditions. The necessary conditions and documents for the grant program to be applied for should be prepared in advance. It is very important to follow the application processes of grant programs.


What Does State-Supported Grant Mean?

Although the state does not give grants to every individual and new company or firm, in some cases, it can provide grant support to persons and institutions deemed necessary. The government generally provides grant support to tradespeople or individuals who will operate in the agriculture and livestock sectors. To receive state-supported grants, individuals in need must apply to the necessary places. In this regard, when the applications reach the relevant authorities, they can be evaluated for state-supported grants. There are specific conditions for citizens to be able to receive state-supported grants. These conditions are:
● Being over 18 years old
● Having documentation indicating they operate in the granted areas
● Not being employed in any insured job

Once these conditions are met, citizens may apply for state-supported grants. Additionally:
● Those involved in livestock activities
● Promising project owners and new entrepreneurs
● Tradespeople
● Those engaged in agricultural activities
can also be among those who are eligible to receive state-supported grants. These individuals can benefit from the opportunity to utilize the state’s grant or grant loan options by uploading the required documents via platforms like e-government.


How to Obtain a Grant?

Individuals wishing to benefit from grant programs must apply to institutions or organizations that provide grants. Being over 18 years old is one of the most important conditions for those who want to benefit from grant support. Each grant program has its specific conditions and requirements. Applicants must meet these conditions and requirements. They must submit the required documents completely and up-to-date to the institutions during the application. To benefit from grant support, you must have projects related to the areas where this support is provided and document them.


Who Can Receive Grants?

It is also a curious topic who can receive grant support as much as which institutions provide it. To be able to receive grant support, you must comply with the conditions of the programs you will apply to. To benefit from grant support, you must be a citizen of Turkey. Primarily, you must be over 18 years old but under 41. While having a high school or university diploma is not a criterion, it is important for the person applying for grant support to be literate. Those with new business initiatives, producers in the agricultural sector, tradespeople, and entrepreneurs can benefit from grant support.


What Are the Conditions for KOSGEB Grant Support?

KOSGEB provides special grant support to new entrepreneurs, SMEs (Small and Medium-sized Enterprises), and tradespeople. So, what are the conditions for the grant support it provides? The conditions for KOSGEB grant support are as follows:
• Must be a citizen of the Republic of Turkey.
• Must be above 18 years and below 41 years old.
• Must be literate.
• Must not be employed in any job from the date of applying for grant support.
• Must not be enrolled in formal education from the application date.
• Must have no tax liability.
• Must not have received any other grant support for the same project before.


How Much is KOSGEB Grant Support?

KOSGEB is among the most developed institutions regarding grants in Turkey. This institution, which helps the long-term development of the Turkish economy by supporting SMEs and tradespeople, implements many activities. Despite primarily targeting tradespeople and SMEs, KOSGEB has been striving to ensure that entrepreneurs also have special opportunities recently. Recognizing that commerce exists not only in agriculture and livestock but also in various fields, this institution also supports young entrepreneurs through training programs. Participation in these training sessions is free. The amounts of KOSGEB grants are:
● 2,000 TL grant is given for the costs of a newly established business. This grant is non-repayable.
● 18,000 TL grant is given for machinery, office equipment, and software support for businesses established for no more than 24 months. This amount is the upper limit and is non-repayable.
● 30,000 TL grant is given for operating expense support for newly opened businesses that have been established for no more than 24 months. This grant is prepared by calculating the net rent and personnel salaries. It is non-repayable.
● Another KOSGEB grant is the Fixed Investment Support. New businesses established for no more than 24 months can benefit from this. This grant is provided against collateral for machinery, equipment, and software purchased or to be purchased by the business until this date. The amount of the repayable grant is 100 TL.


In Which Areas Does KOSGEB Provide Grants?

KOSGEB especially supports the implementation of different projects by creating specific programs for entrepreneurs. The most important of these is aimed at supporting young entrepreneurs. The grant programs specially prepared by KOSGEB for entrepreneurs are as follows:
• Entrepreneurship Support
• Traditional Entrepreneur Support Program
• Entrepreneurship
• Entrepreneurship Training
• Business Plan Award Support Program
• Advanced Entrepreneur Support Program


What Do Grant Consulting Firms Do?

Grant Consulting Firms undertake all necessary processes for businesses that cannot allocate time to grant and incentive processes due to their workload, determining, developing, and executing suitable projects as if they were part of the company's personnel. Initially, they establish the topics that will benefit the business, but before that, they thoroughly analyze your company, your sector, the work you do, your product, or your service. After the analysis, they undertake the application processes regarding the established project topics, preparing the file, revising tasks, and following up to ensure the successful acceptance of the project. These efforts ultimately provide significant time and cost savings for your company.


How to Access Open Grant Programs?

The periods when all grant programs provided by TÜBİTAK, KOSGEB, the Ministry of Trade, and the Ministry of Industry and Technology open are announced through the relevant institution's page. However, to learn when a program that has been open for a certain period will close, what the application requirements are, or who can apply, you can contact ODS Consulting Group. As ODS, we plan all necessary stages for you to benefit from the support and monitor the process. Our Project Development Consultants carefully prepare each support application file.


What Are Livestock Grant Supports?

There are supports aimed at investments in livestock to increase production in rural areas, contribute to regional development, and ultimately raise direct income. Investments in cattle farming, sheep and goat farming, bee keeping, and silk moth cultivation fall within the scope of these supports. These supports are implemented in the provinces designated by the ministry between 2020-2022.


What Are the Investment Topics and Support Rates for Livestock Supports?


Investment Topic

Support Rate

Buffalo

50

Breeding Ram and Buck Investments

50

Small Ruminant Breeding Investments

85

Goose and Turkey Breeding

75

Silkworm Breeding

100

Beekeeping

50




Youth Farmer Grant Supports

These supports, which were initiated in April 2022 for the first time by the state to support the youth in agriculture and ensure their activity in this field, aim at increasing employment in rural areas and expanding the supply chain. These supports cover the subsequent 3 years from the date they began. The support amount given to each young farmer is set at 30,000 lira this year, and the total general budget is determined to be 450 million lira. These amounts may vary each year.


How Much is the Young Entrepreneur Grant Support?

As of 01.06.2018, entrepreneurs who establish a sole proprietorship aged between 18 and 29 are provided with a year-long Bağ-Kur premium support. Thus, the premium amounts they need to pay for 1 year are covered by the state treasury. Additionally, the state grants young entrepreneurs a tax exemption right for profits up to 75,000 TL for a period of 3 years. However, there are certain conditions to benefit from these rights.
● Must not be over 30 years old
● Must be benefiting from Bağ-Kur for the first time since 01.06.2018
● Must not have opened any company previously or been a partner
If the above conditions are met, young entrepreneurs are granted tax exemption rights. In addition to Bağ-Kur premium support and income tax support, the Small and Medium Enterprises Development and Support Administration can provide grants ranging from 65,000 TL to 375,000 TL for young entrepreneurs aged 18-29.


Disabled Grant Supports

Disabled Grant Supports are provided to reintegrate individuals who have lost their abilities mentally, physically, psychologically, and emotionally into social and work life. Conditions that must be met to benefit from support include having a labor loss of at least 40%, being registered as disabled with İşkur, not having an active business registered in their name, and not owing anything to İşkur. Supported expenses include support for establishment operations, operational expense support, and fixed asset support.


Which Institutions Provide Grants?

As mentioned above, many foundations and institutions provide assistance to young entrepreneurs in addition to state institutions. To receive interest-free support loans, preparing a business project is among the expectations of all foundations and institutions. If the projects are submitted to the necessary locations and approved, companies and entrepreneurs can benefit from the necessary grant or loan support.

For example, organizations like KOSGEB provide opportunities for female entrepreneurs that are 10% greater than others. Additionally, some development agencies, Ziraat Bank, the Agricultural and Rural Development Support Institution, and the Ministry of Agriculture and Forestry also offer grant support to newly established companies, young entrepreneurs, tradespeople, and artisans.

Furthermore, citizens working as tradespeople also have the opportunity to obtain financial support from institutions such as the Ministry of Trade, the General Directorate of Tradesmen and Artisans, and Tradesmen's Cooperatives.

As noted, grant-giving institutions provide grants in exchange for specific projects. Considering this, it is imperative that individuals take care in choosing their projects and make the right decisions regarding the sectors their chosen projects are aimed at.


What Are Agricultural Grant Supports?

It is known that agriculture is one of the activities providing the most employment, especially in rural areas. After the industrial revolution, machinery and equipment replaced the manpower used in agriculture and livestock. Today, the state offers some grant opportunities to individuals who wish to continue agricultural activities. Especially in recent years, grants of up to 50% have been provided for certain machines and equipment for agriculture. Examples of machines for which grants will be allocated include:
● Milk milking units and cooling tanks
● Straw chopping machines
● Hazelnut collecting machines
● Garden tractors
● Beekeeping machines and equipment
● Cotton harvesting machines
● Feed preparation machines

The base investment amount for grants is determined as a maximum of 50,000 TL for individuals and a maximum of 100,000 TL for organized groups.


How to Obtain Agricultural Grant Support?

To receive the necessary support in the agricultural field, one must first go through an application process. Applications are accepted by the Provincial and District Forestry and Agriculture Directorates. To apply for the grant program, individuals and organized groups can make preliminary applications by declaring the documents that show they are conducting agricultural activities and their land assets.

After evaluating the applications, the relevant ministries accept the grant requests of eligible candidates and instruct the General Directorate of Ziraat Bank to execute their payments.


How ODS Consulting Group Assists Firms with Grant Consultancy

ODS Consulting Group assists in identifying potential supports for your business by regularly visiting your company according to your needs. After identifying the supports, we structure the project application processes according to your company's spending plans. Following the activation of your company's application page for the relevant institution's support system, we complete the processes for preparing and submitting the application file for the support program. We take charge of tracking the application until the results are finalized.

If you would like more detailed information, please visit our grant and support management page.


How to Access Current Grant and Incentive Announcements?

Current grant and incentive announcements can be accessed through the web pages of the relevant institutions, as well as through the ODS Consulting Group's website, which has a specialized staff in this field. Our website, where regular updates on the programs are made, contains detailed information on support programs suitable for many institutions and various supports.

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About Us CTA Image

Are you ready to transform your business?

If you are thinking about investing, growing, or scaling your exports, you are with the right partner at the right time. The step you take today will determine the future of your company. Let’s evaluate the opportunities ahead of your company and the growth roadmap together.

About Us CTA Image

Are you ready to transform your business?

If you are thinking about investing, growing, or scaling your exports, you are with the right partner at the right time. The step you take today will determine the future of your company. Let’s evaluate the opportunities ahead of your company and the growth roadmap together.

Creating a culture of consistent learning and growth

What is a grant?

Creating a culture of consistent learning and growth

What is a grant?

Creating a culture of consistent learning and growth

What is a grant?

Creating a culture of consistent learning and growth

What is a grant?