Press Release 2008

Enhancement measures to SME Loan Guarantee Scheme implemented on November 6
Monday, November 3, 2008

Following approval by the Finance Committee of the Legislative Council, the enhancement measures to the SME Loan Guarantee Scheme (SGS) will be implemented on Thursday (November 6). 

As at this morning (November 3), 10 participating lending institutions (PLIs) have completed the legal procedures with the Government and are ready to take on SGS applications with the enhancement measures. Please refer to the Trade and Industry Department website www.smefund.tid.gov.hk for details of the PLIs. The information on the website will be updated from time to time as more PLIs sign on to join the improved schemes. 

All applications for SGS should be submitted through the PLIs. The Trade and Industry Department will start to accept applications from the PLIs on November 6.

The enhancement measures aim to provide greater support to SMEs in the middle of the global financial turmoil. For SGS, the sub-ceilings for the Business Installations and Equipment Loans (BIE) and Working Capital Loans (WCL) will be removed, while the overall maximum amount of guarantee for each SME is maintained at $6 million. In addition, the maximum guarantee period for WCL will be extended from two years to five years. Each SME will also be allowed to recycle the guarantee once after it has fully paid up the loan backed up by the guarantee, which means each SME will be able to obtain a maximum amount of guarantee of $12 million in its lifetime. Moreover, the indicative ceiling of guarantee exposure for each PLI will be increased from $1.25 billion to $1.5 billion in order to provide more "quota" for the PLIs in granting loans.

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