Hong Kong Extends 80%, 90% 100% Small & Medium Sized Enterprise Financing Guarantee Scheme from End-June to End-2024, 33 Banks Including HSBC, Standard Chartered, DBS, Bank of East Asia, Nanyang Commercial Bank & Dah Sing Bank
23rd February 2023 | Hong Kong
Hong Kong Financial Secretary has announced in the 2023-24 Budget on the extension of the 80%, 90% 100% Small & Medium Sized Enterprise (SME) Financing Guarantee Scheme from end-June to end-2024. There are a total of 33 participating banks including HSBC, Standard Chartered, DBS, Bank of East Asia, Nanyang Commercial Bank & Dah Sing Bank. See below for full list. 100% Guarantee: The loans under the Special 100% Loan Guarantee are fully guaranteed by the Government at a concessionary low-interest rate. The Special 100% Loan Guarantee started to receive applications on 20 April 2020. 90% Guarantee: The 90% Guarantee Product aims at providing additional support to small-sized enterprises and businesses with relatively less operating experience to obtain financing. 80% Guarantee: The 80% Guarantee Product has provided strong support for the Enterprises in obtaining financing in the commercial lending market since its launch on 31 May 2012 and benefited an increasing number of enterprises. To further alleviate the financial burden of the Enterprises and assist them to obtain financing from the Lenders, the Government has implemented enhancements for qualifying guarantees under the 80% Guarantee Product from time to time since its launch. Enterprises wishing to apply for loans may approach the lending institutions. Details are available on the SFGS webpage: https://www.hkmc.com.hk/sfgs. For public enquiries, please call the SFGS Hotline at 2536 0392. More info below
” Hong Kong Extends 80%, 90% 100% Small & Medium Sized Enterprise Financing Guarantee Scheme from End-June to End-2024, 32 Banks Including HSBC, Standard Chartered, DBS, Bank of East Asia, Nanyang Commercial Bank & Dah Sing Bank “
List of Participating Banks in SME Financing Guarantee Scheme
- Allied Banking
- Bank of China
- Bank of Communications
- Bank of Communications
- China CITIC Bank
- China Construction Bank
- Chiyu Banking Corporation
- Chong Hing Bank
- Citibank (Hong Kong) Limited
- CMB Wing Lung Bank
- Commonwealth Finance Corporation
- CTBC Bank
- Dah Sing Bank
- DBS Bank
- DZ BANK AG Deutsche Zentral-Genossenschaftsbank
- East West Bank
- Fubon Bank
- Hang Seng Bank
- Hong Leong Bank
- Industrial and Commercial Bank of China
- Nanyang Commercial Bank
- OCBC Wing Hang Bank
- ORIX Asia
- OCBC
- Ping An OneConnect Bank
- PT. Bank Negara Indonesia (Persero)
- Public Bank
- Public Finance
- Shanghai Commercial Bank
- Standard Chartered Bank
- The Bank of East Asia
- HSBC
- ZA Bank
View: List of 33 Participating Banks
1) Special 100% Loan Guarantee under the Scheme (“Special 100% Loan Guarantee”)
Important Note to Loan Applicants under the Special 100% Loan Guarantee of the SME Financing Guarantee Scheme (“Scheme”):
HKMC Insurance Limited (“HKMCI”) wishes to alert the members of the public to beware of anyone offering to make loan applications or obtain approval for a loan under the Scheme for a fee.
Loan applicants are reminded that:
1. they need not engage or appoint any third party (except the participating lenders under the Scheme (“Lenders”)) to apply for a loan under the Scheme. Any loan application prepared by or submitted through a third party may incur unnecessary financial costs or loss to the applicant and expose the applicant’s personal data to the risk of disclosure to or misuse by an unscrupulous third party;
2. they should apply for a loan under the Scheme directly through the Lenders which will provide assistance without levying any application fee or handling fee; and
3. the Lenders and HKMCI will not tolerate any illegal conduct (e.g. making a false declaration or using a false instrument) and will report suspected illegal conduct to the relevant law enforcement agencies.
To ease the cash flow problems of Enterprises adversely affected by the outbreak of COVID-19, the Financial Secretary announced in the 2020-21 Budget Speech that a Special 100% Loan Guarantee would be introduced under the Scheme. The Special 100% Loan Guarantee aims at alleviating the financial burden of paying employee wages and rents by the Enterprises which are suffering from reduced income and to help minimise the Enterprises shutting down and layoffs. The loans under the Special 100% Loan Guarantee are fully guaranteed by the Government at a concessionary low-interest rate. The Special 100% Loan Guarantee started to receive applications on 20 April 2020.
In order to further alleviate the cash flow pressure of the Enterprises due to the rapid deterioration of the business environment following the outbreak and spread of the COVID-19, the Government has introduced various enhancements to and relief measures under the Special 100% Loan Guarantee.
The eligible Enterprises must have been operating for at least three months in Hong Kong as at 31 March 2022, and have suffered at least a 30% decline in sales turnover in any month since February 2020 (“Affected Period”) compared with the monthly average of any preceding quarter from January 2019 to March 2022 (“Reference Period”), provided that the Affected Period must not be earlier than the Reference Period.
The maximum loan amount for each eligible Enterprise is the total amount of employee wages and rents for 27 months or HK$9 million, whichever is the lower. The maximum repayment period is ten years.
The application period for the Special 100% Loan Guarantee is until end-March 2024.
2) 90% Guarantee Coverage under the Scheme (“90% Guarantee Product”)
With the approval of the funding by the Finance Committee of the Legislative Council on 6 December 2019, the 90% Guarantee Product under the Scheme has been introduced on 16 December 2019. The 90% Guarantee Product aims at providing additional support to small-sized enterprises and businesses with relatively less operating experience to obtain financing. With the rapid deterioration of the business environment following the outbreak and spread of the COVID-19, the Government has announced some enhancements and relief measures on the 90% Guarantee Product.
The application period for the 90% Guarantee Product is until end-March 2024.
3) 80% Guarantee Coverage under the Scheme (“80% Guarantee Product”)
To help tide the Enterprises over financing difficulties as a result of a possible credit crunch in midst of the uncertain global economic environment, the Financial Secretary announced in the 2012-13 Budget Speech a series of measures to support the Enterprises, including the introduction of the time-limited Special Concessionary Measures under the Scheme which provides 80% guarantee coverage to credit facilities of eligible Enterprises approved by the Lenders at concessionary guarantee fee rates.
The 80% Guarantee Product has provided strong support for the Enterprises in obtaining financing in the commercial lending market since its launch on 31 May 2012 and benefited an increasing number of enterprises. To further alleviate the financial burden of the Enterprises and assist them to obtain financing from the Lenders, the Government has implemented enhancements for qualifying guarantees under the 80% Guarantee Product from time to time since its launch.
The application period for the 80% Guarantee Product is until end-March 2024.
Enterprises wishing to apply for loans may approach the lending institutions. Details are available on the SFGS webpage: https://www.hkmc.com.hk/sfgs. For public enquiries, please call the SFGS Hotline at 2536 0392.
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