August 18, 2022
6 minute read

Hong Kong government backed small business financing

Designed for small medium enterprises (SMEs) to obtain bank loans with lower interest rates and lower approval thresholds, the government’s SME Financing Guarantee Scheme (SFGS) aims to ease cashflow pressures on SMEs given the business environment following the effects of COVID-19.

It offers a "Guaranteed Concessional Loan" which, following the announced enhancements in the 2021-2022 Budget, the scheme has increased the maximum loan amount and extended the maximum repayment period. The application period of the program is extended to June 30th 2023.

Get a comprehensive understanding of the various products within this scheme through the table below.This table will briefly compare the characteristics and application qualifications of the special 100% loan guarantee, 90% guarantee product, and 80% guarantee product.

Eligible companies

The borrower must meet the following requirements:

  1. Must be a limited company, sole proprietorship, partnership or unincorporated body of persons with business operations in Hong Kong and registered under the Business Registration Ordinance (Cap. 310);
  2. Shall not be carrying on the business of a lender or otherwise providing funds available for borrowing in any way;
  3. Shall not be an affiliate of the Lender; and
  4. Shall not be a company or corporation which has any of its shares listed on The Stock Exchange of Hong Kong Limited (whether on its Main Board or the Growth Enterprise Market) or any similar exchange in or outside Hong Kong

The above information offers only a brief introduction to the SFGS plan. The original factsheet source of the above information can be found here as published by The Hong Kong Mortgage Corporation Limited (HKMC).

We know each business is different and the effects of COVID-19 on your business may have varied. We have helped many businesses navigate through the different funding options during this period, so speak to us and we are happy to share our knowledge and experience.

We are committed to helping local small and medium sized businesses, chat to us today!

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