Press Releases

Higher funding ceilings and more flexible procedures for the SME Export Marketing Fund and the SME Training Fund
Tuesday, February 18, 2003

"With effect from February 24, the maximum amount of grant an SME may receive under the SME Export Marketing Fund (EMF) and the SME Training Fund (STF) will be increased to $40,000 and $30,000 respectively. This represents an increase in the funding ceilings by four times for the EMF, and two times for the STF. Also, an SME may apply for the STF either before or after the commencement of the training courses, "a spokesman for the Trade and Industry Department said today (February 18).

Currently, the maximum amount of grant an SME may receive under the EMF is $10,000. An SME may only receive EMF grant once. For the STF, the current funding ceilings are $15,000 per SME, of which $5,000 is for employers' training and $10,000 is for employees' training. Applications have to be submitted before the commencement of the training courses.

Under the new arrangements, there will be no limit on the number of export promotional activities an SME may apply for the EMF, as long as the ceiling of $40,000 per company is not exceeded. For each successful application, the maximum amount of grant will be $20,000, or 50% of the total expenditure on fundable items of the export promotional activities, whichever is the less.

For the STF, an SME may receive, on a dollar-to-dollar matching basis, up to $10,000 for employers' training, and $20,000 for employees' training under the new arrangements. Hence, a maximum of $30,000 per company. Also, an SME may apply for the STF after the commencement of the training courses, as long as the applications are submitted not later than 30 days after the completion of the courses.

The new arrangements will also apply to existing beneficiaries of the EMF and the STF.

"We believe that the new arrangements will encourage SMEs to more actively take part in export promotional activities, and to address the training needs of their employers and employees more comprehensively," the spokesman said.

Information leaflets, application forms, and guidelines for the revised EMF and STF will be obtainable at the Trade and Industry Department (Trade and Industry Department Tower, 700 Nathan Road, Mongkok, Kowloon), District Offices, and major SME support organisations, on or after 24 February 2003. They can also be downloaded at the website of the SME funding schemes (www.smefund.tid.gov.hk).For enquiries, please call 2398 5125.

The Government launched the EMF in December 2001 to encourage SMEs to expand businesses through participating in export promotional activities, including study missions. It launched the STF in January 2002 to help SMEs enhance human resources by providing them with training grant for sending their employers or employees to local or overseas training which is relevant to their businesses.

Apart from the EMF and STF, the Trade and Industry Department also administers the SME Business Installations and Equipment Loan Guarantee Scheme (BIG) and the SME Development Fund (SDF). The Small and Medium Enterprises Committee completed a comprehensive review of the four SME funding schemes and came up with various recommendations to enhance the effectiveness of the schemes in late 2002. The Government accepted all the recommendations. Measures to further enhance the effectiveness of the BIG will be announced later.

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