10 Mar
Special 100% Loan Guarantee under the SME Financing Guarantee Scheme

The SME Financing Guarantee Scheme (SFGS) is a financing scheme which the Government guarantees loans to help small and medium-sized enterprises (SMEs) in Hong Kong secure financing with lower interest rates. The Government updates the Scheme from time to time on account of the business environment.


In 2020, the Government introduced a Special 100% Loan Guarantee in view of the prevailing economic downturn. The Special 100% Loan Guarantee offers the lowest interest rate and is tailor-made for SMEs, aims at alleviating the financial burden of paying employee wages and rents by the enterprises which are suffering from reduced income and to help minimising the enterprises shutting down and layoffs. The loans under the Special 100% Loan Guarantee are fully guaranteed by the Government and started to receive applications on 20 April 2020.


The Financial Secretary announced in the 2022-23 Budget on February 23 that enhancements will be made to the Special 100% Loan Guarantee and the application period will be extended to the end of June 2023.



Operation requirements


1.     Eligible businesses must have been in operation for at least 3 months in Hong Kong as at 30 June 2020;

2.     Have suffered at least a 30% decline in sales turnover in any month since February 2020 compared with the monthly average of any quarter from January 2019 to June 2020; and 

3.     With a valid Business Registration Certificate


Not applicable to a listed company, lending institution or the lender’s affiliates

Maximum loan amount

27 months' salaries and rents of the business, at maximum of HK$9 million#

Actual annual interest rate


Guarantee fee


Repayment period

1.    Fixed repayment period (monthly repayment)

2.    The longest period for a repayment is 10 years#

3.    Deferral of principal repayment up to 24 months#

# The proposed measures will be implemented after completion of the relevant legislative process. 


If you require any assistance, please contact Ms. Amie Cheung at