HKSAR gov't announces stronger financing support for SMEs

Added On September 6, 2019

Paul Chan, financial secretary of the HKSAR government, disclosed details about the new favorable policies after attending an SME forum on Wednesday.
Chan said, under the existing SME Financing Guarantee Scheme, a new product that provides guarantee coverage of 90 percent will be introduced, with the maximum loan up to about 765,000 U.S. dollars for a single borrower and a guarantee period up to five years.
Chan added that SMEs will be exempted from the requirement of being in operation for at least one year.
Edward Yau, the secretary for commerce and economic development of the HKSAR government, said the government will also simplify loan-applying procedures for more than 40 of its funds to better help SMEs.
Given current global economic situation and recent violent incidents in Hong Kong, Hong Kong Purchasing Managers' Index sank to a more-than-10-year low in August, with business confidence down to its lowest on record.
The HKSAR government announced in August a package of measures to support enterprises and relieve people's financial burden, which will cost about 2.4 billion U.S. dollars.