Financial support for SMEs 
2019-09-05
THE government of China’s Hong Kong Special Administrative Region yesterday announced new financing support for small and medium-sized enterprises to help them fend off downside economic risks.
Paul Chan, financial secretary of the HKSAR government, disclosed details about the new favorable policies after attending an SME forum yesterday.
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 HK$6 million (US$765,300) for a single borrower and a guarantee period up to five years, Chan said, adding that SMEs will be exempted from the requirement of being in operation for at least one year.
SMEs that obtain loans through the product with 80-percent guarantee coverage can only pay interests for six months and will be allowed for an extension for another six months, Chan said.
