1. Special 100% Loan Guarantee
The Financial Secretary announces on 26 February 2020 that the HKMC Insurance Limited (HKMCI) will introduce special 100% Loan Guarantee under the SME Financing Guarantee Scheme. The new measure aims to alleviate the burden of paying employee wages and rents by small and medium-sized enterprises which are suffering from reduced income, thereby help minimise enterprise shutting down and layoffs.
Eligibility
Loan Ceiling and Maximum Loan Guarantee Period
Interest Rate and Guarantee Fee
According to the information from the banks which we work closely with, the application process is about one week after submission of the guarantee application form and relevant supporting documents.
2. 90% Guarantee Coverage
With the approval of the funding by the Finance Committee of the Legislative Council on 6 December 2019, the 90% Guarantee Product under the SME Fiancing Guarantee Scheme (SFGS) has been introduced on 16 December 2019. The 90% Guarantee Product aims at providing additional support to smaller-sized enterprises, businesses with relatively less operating experience, as well as professionals seeking to set up their own practices, to obtain financing. The application period will last until end-June 2022. Guarantee Fee Concessions and Further Concessions in Guarantee Fee apply to the 90% Guarantee Product as well.
The terms applicable to the 90% Guarantee Product are similar to those for the 80% Guarantee Product except for the items below:
Business Operation History | There is no requirement on business operation history | |
Eligible Type of Loans | Term loan only | |
Maximum Facility Amount | HK$6 million | |
Maximum Guarantee Period | Five years | |
Maximum Interest Rate | It requires the overall interest rates of the guaranteed facilities not exceeding specified interest rate ceilings tiered based on the borrower’s business operation history. | |
Annual Guarantee Fee Rates | On qualifying guarantees under the 90% Guarantee Product under Further Concessions in Guarantee Fees:
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We can refer our clients to the banks which we work closely with, please contact Ms. Amie Cheung at amie.cheung@lccpa.com.hk for further assistance.