As part of the Demján Sándor Program, the National Champions combined credit scheme has been initiated in Hungary with a budget of 155.6 billion forints (approximately €420 million).

The program aims to increase productivity and export capacity among small and medium-sized enterprises (SMEs) by facilitating green and digital transitions.

Businesses can apply for investment loans ranging from a minimum of 150 million to a maximum of 600 million forints with a ten-year term at a zero percent interest rate.

Under certain conditions, companies may convert up to 180 million forints of their loan into non-refundable support.

Rihard Szabados, the Deputy State Secretary responsible for small and medium-sized enterprise development and technology at the Ministry of Economic Development (NGM), emphasized that the new funding format includes investment loans, non-refundable support, and consultancy services, all accessible in a streamlined process.

To maintain eligibility for non-refundable support, companies must achieve a GDP growth rate per capita that is 1.5 times higher than the national average during the examined period.

Participation in supplier development or export development services provided by the Hungarian Economic Development Agency (MGFÜ) is also required.

Eligible SMEs must meet the following criteria:
- Have at least three completed business years,
- Employ more than five individuals,
- Generate an annual net revenue above 100 million forints.

If the project aims to strengthen exports, at least 5% of revenue in any of the last three years must be derived from export activities.

Additionally, businesses must have ongoing supplier relationships with a medium or large enterprise for at least 30 days.

A significant requirement is that projects must be implemented outside the Budapest region.

Szabados noted that the program primarily targets companies with growth potential that have established supplier relationships and are either exporters or planning to expand into foreign markets.

Approximately 300 to 500 applications are anticipated, with submission available until the end of December 2026.

The program mandates that projects must include investments in technological modernization and equipment acquisition (making up at least 30% of the accountable costs), as well as IT development and/or investments related to renewable energy (also at least 30%).

Project execution is expected to be completed within 24 months, with a possible six-month extension granted for justified cases.

Bence Katona, the CEO of the Hungarian Development Bank (MFB), which oversees the National Champions project, stated that the scheme aims to enable SMEs to undertake investment-intensive projects through financing, thereby enhancing their technological competitiveness and productivity.

The assessment of the non-refundable portion will consider not only the growth of the companies' gross added value but also their utilization of consultancy services from MGFÜ, thus providing them with valuable know-how.

The MFB's goal is to promote economic development in areas where market shortcomings are identified, which is reflected in various funding initiatives, including the Housing Capital Program in collaboration with the National Capital Holding.

The MFB is also tasked with ensuring that EU funds are efficiently and transparently allocated to businesses.

Beginning June 23, companies can submit loan applications through MFB Points located in branches of MBH, OTP, and Gránit banks.

Balázs Greinstetter, the Director General of the National Development Center (NFK), highlighted that this initiative is a pillar project expected to yield significant economic and social impacts, accompanied by targeted communication efforts.

The program is intended to enhance the competitiveness of Hungarian companies and the overall economy, focusing on critical areas such as digital transformation and green transition.

Unlike the previous EU financial cycle, this new combined support, which includes loans and non-refundable assistance, is offered through a one-stop administrative process to simplify the burden on enterprises.