JTF loan scheme: what to know about the draft

Preferential EU financing may become available to small and medium-sized enterprises in Baranya, Borsod-Abaúj-Zemplén and Heves counties. The draft SME Loan Scheme financed from the Just Transition Fund (JTF) has been put out for public consultation. According to the draft, companies could receive an interest-free investment loan and related non-repayable support for energy-efficiency and green developments. The conditions are not yet final, but the current stage gives those affected a chance to share their views and prepare in time.

What has started now, and until when can comments be submitted?

According to the government grants portal announcement, the draft call coded KEHOP_PLUSZ-5.1.0-26, titled “Just Transition Fund (JTF) SME Loan Scheme”, has been released for public consultation. Based on the announcement, the programme is financed by the European Union’s Just Transition Fund.

According to the announcement, comments can be submitted until 12 October 2026 via the Partnership Forum. This is not an application submission but a consultation on the draft: business owners, advisers and professional organisations can also indicate if they consider a condition difficult to meet in practice or inaccurate.

Who can apply: businesses in only three counties

One of the programme’s most important features is its strict territorial limit. According to Üzletem.hu’s report, the funding will be available only to small and medium-sized enterprises in Baranya, Borsod-Abaúj-Zemplén and Heves counties. Based on the outlet’s reporting, Baranya would receive HUF 11 billion, while Borsod-Abaúj-Zemplén and Heves together would receive HUF 20 billion.

The choice is not accidental. The Just Transition Fund is aimed at regions most affected by the transition away from fossil fuels. According to one publication by the National Society of Conservationists in Hungary, the JTF’s core objective is to support the economic restructuring of coal-industry and fossil-energy-dependent regions. In the three counties, coal mining and coal-based energy production were defining for a long time, so the transition of local businesses is a key consideration.

How much loan funding is available, and on what terms?

According to the analysis by the Hungarian Photovoltaic and Solar Collector Association (MNNSZ), the draft sets out interest-free investment loans between HUF 5 million and HUF 500 million, to which a non-repayable grant of up to 50 per cent may be linked. The essence of the combined structure is that part of the investment would have to be repaid on favourable terms, while another part would not.

According to Üzletem.hu, the upper limit of the loan is fifteen times the previous business year’s operating profit. If this remains in the final call, a company closing the year with HUF 10 million in operating profit could apply for no more than HUF 150 million, even if the theoretical ceiling under the programme is HUF 500 million. This could be a particular bottleneck for smaller businesses or those with weaker results in the most recent year.

The total budget remains an open question for now, because different figures have appeared. Üzletem.hu writes about total financing of HUF 40 billion, while the MNNSZ analysis mentions a loan envelope of HUF 31 billion based on the draft. The county breakdown (11 + 20 billion) matches the HUF 31 billion figure. It is possible that the two numbers refer to the direct loan envelope and the full related financing package, but this will become clear only from the final call.

What can the funding be spent on?

According to the MNNSZ summary, the programme’s main objective is to support energy efficiency, electrification and clean technologies. This may include, for example, building energy upgrades, the electrification of machinery and processes, and solutions using renewable energy. Exactly which items will be eligible will be defined by the final call.

According to Üzletem.hu’s report, the draft may also include an expectation that supported developments must achieve at least 30 per cent energy savings. This reporting concerns a draft that can still be amended, so for now it cannot be treated as a fixed eligibility condition: whether there will be such a threshold, and if so exactly which indicator it will apply to, will be decided by the final call. If a similar requirement is included in the call, applicants will likely have to demonstrate the expected savings in numerical terms already at the planning stage, which typically requires an energy assessment or expert calculation.

The publication by the National Society of Conservationists in Hungary also stresses that strict exclusion criteria are needed to rule out fossil technologies. This is the organisation’s position, but it illustrates well that investments which tie a business to long-term fossil energy use are unlikely to be eligible under the programme.

When will applications be able to be submitted?

According to the MNNSZ analysis, the planned period for submitting loan applications could be between 1 January 2027 and 31 October 2027. For now, this timing should be treated with caution: after the public consultation, the timetable may also change, and the exact dates will be set out in the final call.

If the planned schedule remains in place, businesses will have roughly one year to prepare. However, preparing an energy investment, obtaining quotations and demonstrating the savings can take months, so this may not necessarily be a generous amount of time.

How can rural SMEs prepare?

Although the conditions may still change, there are already a few steps worth considering for businesses that operate in the three affected counties or would carry out the development there:

• Checking the implementation site: according to the reports, the investment must be carried out in Baranya, Borsod-Abaúj-Zemplén or Heves.
• Mapping energy use: without current consumption data, it is difficult to credibly demonstrate the expected savings.
• Assessing financial room for manoeuvre: the previous year’s operating profit may matter for the loan limit, and the repayable part will then have to be serviced from the company’s operations.
• Making use of the consultation opportunity: anyone who sees an obstacle in the draft can report it on the Partnership Forum until 12 October. MNNSZ, for example, has put forward eleven proposals on the draft.

Before making an investment decision of your own, it is worth consulting a grants adviser, accountant or energy specialist, because the return and the risks can differ greatly from one company to another.

Summary: an opportunity that requires timely preparation

The JTF SME Loan Scheme could offer businesses in the three affected counties a rare opportunity: an interest-free loan and a non-repayable grant for energy-efficiency and green developments. The details currently known come from a draft call, so the amounts, deadlines and eligibility rules may still change before the final call is published. This article provides general information and does not constitute financial or grants advice; it is worth reviewing the final conditions in detail once the official call is published.