The government is also helping micro and small farmers in agriculture with new, fixed 3% loans

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The state will assume 100% of the management costs and – in most cases – the guarantee fee, so the schemes represent real, predictable and low-cost financing for smaller agricultural businesses. The government is launching two new loan schemes for micro and small businesses within the framework of the Széchenyi Card Program operated by KAVOSZ Zrt., with a total of 321 billion forints of source insurance this year, announced István Nagy, Minister of Agriculture, on his social media page. The Minister explained that the “Green Road” scheme, which can be applied for up to 5 million forints, can be used by micro-enterprises, including start-ups, while micro- and small enterprises with at least one completed business year are eligible for a loan of up to 50 million forints. Smaller loans can be obtained after a simplified assessment procedure and with a shorter disbursement period, while for larger loans, financiers apply their usual credit assessment method. The schemes can be applied for without your own resources, and for smaller loans, a mandatory guarantor and the guarantee of the guarantee organization are sufficient as collateral, while material collateral is only required for higher-value loans.

Both loan schemes are expected to be announced at the beginning of March 2026

The new financing options serve to improve the liquidity of smaller-scale agricultural enterprises that have more difficulty accessing funds, stabilize their operations, and continuously supply local producer markets. The soon-to-be-available schemes are free to use, meaning that the use of the loan does not need to be proven with invoices or receipts. The interest rate on the loans is a fixed 3 percent per year, taking into account the state interest subsidy, and the state will also cover 100 percent of the management costs, as well as, in most cases, the fee for the joint-paying guarantee provided by the Agricultural and Entrepreneurship Credit Guarantee Foundation – the minister announced. Loan applications can be submitted to the KAVOSZ registration office network, and interested parties can find out about the list of registration offices and financial enterprises participating in the loan provision, as well as the detailed conditions of the schemes, on the website www.kavosz.hu.

AM