100% Loan Guarantee For SMEs 2020

HKMCI 100% Loan Guarantee
Credit to HKMCI: www.hkmc.com.hk

Followed by the Budget 2020, the Hong Kong Monetary Authority Insurance Limited (HKMCI) is going to establish a special 100% Loan Guarantee under the small and medium-sized enterprise (SME) Financing Guarantee Scheme. Instant impact due to the outbreak of COVID-19 has caused lots of local SME suffering from great loss. The support from the government is fundamental for them to recover from the disaster.

The most concerning issues for SME to overcome currently will be the employee ways as well as the rents. Largely reduced income puts their companies in a struggling condition. Hence, the government hopes to save local SME from shutting down via this specially arranged one-off loan.

Details of the Funding

Official Website: http://www.hkmc.com.hk

All sectors, not just including those seriously affected during the COVID-19 outbreak, like retail, tourism, and entertainment sectors are applicable. The government has set a total of 100% guaranteed loan amount to HK$20 billion.

Eligibility of Applicants:

  • Business operations in Hong Kong and be registered in Hong Kong under the Business Registration Ordinance (Chapter 310)
  • Operating for at least three months as at end-December 2019
  • Suffered at least a 30% decline in sales turnover in any month since February 2020 compared with the monthly average of any quarter in 2019
  • Have good loan repayment records
  • *Listed companies, lending institutions and affiliates of lending institutions are not eligible for the Scheme

General information about the loan

  • Guarantee both term loan and revolving credit facilities
  • Loan must be used for general working capital for business operations, acquisition of asset relating to the enterprise’s business

SME Financing Guarantee Scheme Factsheet

About the special loan

  • Maximum amount of the loan per enterprise is the total amount of wages and rents for six months, or HK$2 million, whichever is lower
  • An interest rate of the Prime Rate minus 2.5% per annum (i.e. current interest rate at 2.75%) will be charged
  • Maximum repayment period of a loan under the guarantee is 36 months, with an optional principal moratorium for the first six months

SME Financing Guarantee Fee Calculator

Application Procedure

Contact lenders under the Scheme for loan or credit facility
Lenders will review the application before applying for the guaranteed loan submitting the supporting document to HKMCI

SME Financing Guarantee Scheme Application Procedures

Here’s the list of participating lender: http://www.hkmc.com.hk/files/product/6/List

Finally, the whole application period will last for six months from the launch of the program. The date for submission of applications will be announced later.

For further enquiry, you may call the scheme hotline +852 2536 0392 or sending email to sfgs_enquiry@hkmci.hk.

Credit to Information Services Department, HKSARG: https://www.youtube.com/channel

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