NGM: the second phase of the Demján Sándor 1+1 program is launched – 20 billion forints of support for the development of rural businesses

As stated, the government will do everything in its power to support Hungarian small and medium-sized enterprises. Therefore, from October 6, 2025, it introduced a fixed 3 percent SME loan and doubled the maximum amount of capital that can be invested in a business under the Demján Sándor Capital Program.

However, the government is not stopping here: in order to further strengthen domestic SMEs, it is launching the second phase of the Demján Sándor 1+1 SME Investment Stimulation Support Program with a budget of 20 billion forints. In the new phase of the program, a business can apply for a non-refundable grant of at least 25 million forints and a maximum of 200 million forints, with a support intensity of 50 percent. The aim of the program is to increase the productivity, competitiveness and technological readiness of Hungarian SMEs by supporting the capital investments of rural enterprises, the announcement said.

The first phase of the Sándor Demján 1+1 SME Investment Stimulation Support Program has yielded outstanding results: so far, almost 1,400 enterprises have received support worth 108 billion forints. The subsidies will support investments worth more than 200 billion forints across the country, and nearly two-thirds of the funds will go to the most disadvantaged regions, contributing to the strengthening of the local economy, the Ministry of National Education and Culture reminded.

The announcement also mentioned that the challenging international economic situation continues to be unfavorable to business investments. The European Union is struggling with increasingly serious competitiveness problems, while the customs agreement between the EU and the United States has created disadvantageous conditions for European businesses. Therefore, the government decided to continue the program in order to achieve long-term sustainable investment-driven economic growth and to support domestic SMEs even more effectively.

Richard Szabados, State Secretary for the Development of Small and Medium-Sized Enterprises, Technology and the Defense Industry, drew attention in the announcement to the fact that the difference between the labor productivity of domestic micro, small and medium-sized enterprises and large companies is more than double, which justifies the need to promote the technological leap of SMEs with non-refundable subsidies.

– the Secretary of State stated.

Within the framework of the tender, the support will exclusively support the purchase of new, modern equipment, so that SMEs can develop their production faster and more efficiently. Thanks to the simplified conditions, the application process will also be more transparent and easier for businesses to complete.

In the new phase of the program, a business can apply for a non-refundable grant of at least HUF 25 million and a maximum of HUF 200 million, with a support intensity of 50 percent. The fund is expected to contribute to the development of approximately 250 additional businesses, which could result in at least HUF 40 billion of new investments in the Hungarian economy. The subsidy amounts will be paid 100 percent in advance in the first quarter of 2026, so that businesses can start their investments as soon as possible, the Ministry of National Economy announced.