Hong Kong Extends SME Financing Guarantee Scheme by 2 Years (2028 March) & Total Loan Guarantee Increased by $2.5 Billion (HKD 20 Billion) to $40 Billion (HKD 310 Billion)
18th September | Hong Kong
Hong Kong has extended the SME Financing Guarantee Scheme by 2 years (2028 March) & total loan guarantee increased by $2.5 billion (HKD 20 billion) to $40 billion (HKD 310 billion). HKMC Insurance (17/9/25): “The Chief Executive announced in “The Chief Executive’s 2025 Policy Address” today (17 September) that the application period for the 80% Guarantee Product under the SME Financing Guarantee Scheme (SFGS) will be extended for two years to the end of March 2028. The total loan guarantee commitment under the SFGS will be further increased by HK$20 billion to HK$310 billion, and the principal moratorium arrangement will be extended for one year. The application period for principal moratorium arrangement, which is originally due for expiry on 17 November 2025, will be extended to 17 November 2026. HKMC Insurance Limited will follow up with the participating lenders to implement the following arrangements: (1) Eligible borrowing enterprises may apply to the participating lenders for a principal moratorium period of up to 12 months on or before 17 November 2025, and/or apply to the participating lenders for a principal moratorium period of up to 12 months between 18 November 2025 and 17 November 2026. This means that the principal moratorium period can be up to 24 months in total; and (2) For loans newly drawn down on or after 18 November 2025, eligible borrowing enterprises may apply to the participating lenders on or before 17 November 2026 for a principal moratorium period of up to 12 months. Borrowing enterprises can contact their participating lenders to inquire about specific arrangements starting from 1 November 2025.” In 2024 October, Hong Kong 16 major banks pledged to allocate $47 billion of funds to support Small & Medium-Sized Enterprises (SMEs). On 16th October 2024, the Hong Kong government announced new enhancements to the SME Financing Guarantee Scheme (Small Medium Enterprises), allowing companies to apply for principal moratorium for 12 months for new & existing loans, loan guarantee periods of 80% products extended to 10 years & 90% products extended to 8 years, partial principal payment options offered to new loans. Hong Kong Monetary Authority (HKMA) 16/10/24: “The Chief Executive announced in “The Chief Executive’s 2024 Policy Address” today (16 October) that, for both existing and new loans, borrowing enterprises under the SME Financing Guarantee Scheme will be allowed to apply for principal moratorium for up to 12 months while the maximum loan guarantee periods of the 80% and 90% Guarantee Products will be extended to ten years and eight years respectively. In addition, the partial principal repayment options will be offered to new loans under the two guarantee products. These measures aim to alleviate the repayment pressure on borrowing enterprises, helping them address challenges encountered during economic restructuring. HKMC Insurance Limited will follow up with the lending institutions on the implementation details of the above new measures, aiming to roll them out within November this year. Borrowing enterprises may approach their lending institutions to discuss the arrangements at that time.”
“ Hong Kong Extends SME Financing Guarantee Scheme by 2 Years (2028 March) & Total Loan Guarantee Increased by $2.5 Billion (HKD 20 Billion) to $40 Billion (HKD 310 Billion) “
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Hong Kong 16 Major Banks to Allocate $47 Billion to Support Small & Medium-Sized Enterprises, Hong Kong Enhances SME Financing Guarantee Scheme Allowing Companies to Apply for Principal Moratorium for 12 Months for New & Existing Loans, Loan Guarantee Periods of 80% Products Extended to 10 Years & 90% Products Extended to 8 Years, Partial Principal Payment Options Offered to New Loans
19th October 2024 – Hong Kong 16 major banks have pledged to allocate $47 billion of funds to support Small & Medium-Sized Enterprises (SMEs). On 16th October 2024, the Hong Kong government announced new enhancements to the SME Financing Guarantee Scheme (Small Medium Enterprises), allowing companies to apply for principal moratorium for 12 months for new & existing loans, loan guarantee periods of 80% products extended to 10 years & 90% products extended to 8 years, partial principal payment options offered to new loans. Hong Kong Monetary Authority (HKMA) 16/10/24: “The Chief Executive announced in “The Chief Executive’s 2024 Policy Address” today (16 October) that, for both existing and new loans, borrowing enterprises under the SME Financing Guarantee Scheme will be allowed to apply for principal moratorium for up to 12 months while the maximum loan guarantee periods of the 80% and 90% Guarantee Products will be extended to ten years and eight years respectively. In addition, the partial principal repayment options will be offered to new loans under the two guarantee products. These measures aim to alleviate the repayment pressure on borrowing enterprises, helping them address challenges encountered during economic restructuring. HKMC Insurance Limited will follow up with the lending institutions on the implementation details of the above new measures, aiming to roll them out within November this year. Borrowing enterprises may approach their lending institutions to discuss the arrangements at that time.”
Hong Kong Enhances SME Financing Guarantee Scheme Allowing Companies to Apply for Principal Moratorium for 12 Months for New & Existing Loans, Loan Guarantee Periods of 80% Products Extended to 10 Years & 90% Products Extended to 8 Years, Partial Principal Payment Options Offered to New Loans
18th October 2024 – The Hong Kong government has announced new enhancements to the SME Financing Guarantee Scheme (Small Medium Enterprises), allowing companies to apply for principal moratorium for 12 months for new & existing loans, loan guarantee periods of 80% products extended to 10 years & 90% products extended to 8 years, partial principal payment options offered to new loans. Hong Kong Monetary Authority (HKMA) 16/10/24: “The Chief Executive announced in “The Chief Executive’s 2024 Policy Address” today (16 October) that, for both existing and new loans, borrowing enterprises under the SME Financing Guarantee Scheme will be allowed to apply for principal moratorium for up to 12 months while the maximum loan guarantee periods of the 80% and 90% Guarantee Products will be extended to ten years and eight years respectively. In addition, the partial principal repayment options will be offered to new loans under the two guarantee products. These measures aim to alleviate the repayment pressure on borrowing enterprises, helping them address challenges encountered during economic restructuring. HKMC Insurance Limited will follow up with the lending institutions on the implementation details of the above new measures, aiming to roll them out within November this year. Borrowing enterprises may approach their lending institutions to discuss the arrangements at that time.”
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