Phase 2 of the Sándor Demján 1+1 Program is launching – 20 billion forints for the development of rural businesses
The second phase of the Sándor Demján 1+1 SME Investment Stimulus Support Program has been launched, providing 20 billion forints to support technological modernization and capacity expansion for rural micro, small, and medium-sized enterprises. The goal: a more productive and competitive domestic SME sector, with a simpler application process and faster disbursement.
Key points, in brief
- Grant amount: a minimum of 25 million HUF and a maximum of 200 million HUF per project.
- Aid intensity: up to 50% (non-repayable grant).
- Pre-registration: Starting November 6, 2025.
- Application submission: Starting December 1, 2025, for pre-registered companies only.
- Payment: 100% of the grant will be disbursed as an advance payment in the first quarter of 2026.
- Contact / Administration: vali.hu.
Who is eligible to apply, and for what?
The program supports equipment purchases by SMEs headquartered or operating in rural areas: the acquisition of modern, new machinery and technologies that enable faster, more efficient production and facilitate the transition to higher value-added operations. The call for proposals specifically provides funding for the purchase of new, state-of-the-art equipment, with simplified eligibility criteria and a transparent application process.
Why is this second phase important?
The first phase has so far reached nearly 1,400 businesses, providing 108 billion forints in funding, which has generated over 200 billion forints in investment nationwide. Nearly two-thirds of the funds went to the most disadvantaged regions, significantly strengthening local economies. The current phase is expected to enable the development of an additional ~250 businesses, triggering at least 40 billion forints in new investment.
Roadmap – What Should a Business Do Now?
- Pre-registration on vali.hu – Available starting November 6, 2025.
- Data pre-loading – in the second half of November.
- Submission of grant applications – Starting December 1, 2025, open only to those who have pre-registered.
Tips for a Successful Application
- Project focus: Select tools that tangibly increase capacity or quality.
- Measurable results: Set targets for productivity, quality, or energy efficiency.
- Quick Start: Take advantage of the 100% advance payment option—create a schedule aligned with the Q1 2026 payment.
- Budget: Plan for a 50% grant rate and secure the remaining funds in a timely manner (using your own funds or a loan).
Where can I find the application?
Pre-registration and administrative procedures take place on the vali.hu website; the detailed government announcement and official dates are also available there.
Source: Government of Hungary – “Second Phase of the Sándor Demján 1+1 Program Begins – 20 Billion Forints in Funding for the Development of Rural Businesses” (published: November 5, 2025). (https://kormany.hu)
