The Hong Kong Mortgage Corporation Limited
SME Financing Guarantee Scheme
Helps You Grasp Business Opportunities and Expand Your Business
The SME Financing Guarantee Scheme (“Scheme”) was launched on 1 January 2011 by The Hong Kong Mortgage Corporation Limited (“HKMC”). Since 1 May 2018, the Scheme business has been transferred to and carried on by HKMC Insurance Limited (“HKMCI”), a wholly-owned subsidiary of the HKMC.
Objective and Guarantee Coverage
The Scheme aims at helping local small and medium-sized enterprises (“SMEs”) and non-listed enterprises (collectively, “Enterprises”) to obtain financing from participating lenders (“Lenders”) for meeting their business needs so as to enhance their productivity and competitiveness in the rapidly changing business environment. Under the Scheme, the HKMCI may provide guarantee coverage of 50%, 60% or 70% to the credit facilities of eligible Enterprises approved by the Lenders.
Honoured with the Best SME’s Partner Award by The Hong Kong General Chamber of Small and Medium Business for nine consecutive years since 2012.
Special Concessionary Measures
80% Guarantee Coverage under the Scheme (“80% Guarantee Product”)
To help tide the Enterprises over financing difficulties as a result of a possible credit crunch in midst of the uncertain global economic environment, the Financial Secretary announced in the 2012-13 Budget Speech a series of measures to support the Enterprises, including the introduction of the time-limited Special Concessionary Measures under the Scheme which provides 80% guarantee coverage (“80% Guarantee Product”) to credit facilities of eligible Enterprises approved by the Lenders at concessionary guarantee fee rates.
The 80% Guarantee Product has provided strong support for the Enterprises in obtaining financing in the commercial lending market since its launch on 31 May 2012 and benefited an increasing number of enterprises. The application period for the 80% Guarantee Product is until 30 June 2022.
To further alleviate the financial burden of the Enterprises and assist them to obtain financing from the Lenders, the Government has implemented enhancements for qualifying guarantees under the 80% Guarantee Product from time to time since its launch.
In 2020, with the rapid deterioration of the business environment following the outbreak and spread of the COVID-19, the Government announced further enhancements and relief measures on the 80% Guarantee Product to provide the Enterprises with the much needed financial support to ease their cash flow problem.
Please refer to the SME Financing Guarantee Scheme Factsheet for detailed features of the 80% Guarantee Product, and the enhancements and relief measures introduced.
90% Guarantee Coverage under the Scheme (“90% Guarantee Product”)
With the approval of the funding by the Finance Committee of the Legislative Council on 6 December 2019, the 90% Guarantee Product under the Scheme has been introduced on 16 December 2019. The application period for the 90% Guarantee Product is until 30 June 2022.
The 90% Guarantee Product aims at providing additional support to small-sized enterprises and businesses with relatively less operating experience, to obtain financing.
In 2020, with the rapid deterioration of the business environment following the outbreak and spread of the COVID-19, the Government has announced some enhancements and relief measures on the 90% Guarantee Product.
Please refer to the SME Financing Guarantee Scheme Factsheet for detailed features of the 90% Guarantee Product, and the enhancements and relief measures introduced.
Special 100% Loan Guarantee under the Scheme (“Special 100% Loan Guarantee”)
The Financial Secretary announced in the 2020-21 Budget Speech that a Special 100% Loan Guarantee would be introduced under the Scheme. The Special 100% Loan Guarantee aims at alleviating the financial burden of paying employee wages and rents by Enterprises which are suffering from reduced income and to help minimising Enterprises shutting down and layoffs. The loan guarantee is applicable to SMEs in all sectors, including those mostly affected by the outbreak of the COVID-19, such as retail outlets, travel agents, restaurants, cinemas, karaoke establishments and transport operators, etc.
The Special 100% Loan Guarantee started to receive applications on 20 April 2020.
In order to further alleviate the cash flow pressure of SMEs, the Government announced in September 2020 and February 2021 some enhancements to the Special 100% Loan Guarantee.
The loans under the Special 100% Loan Guarantee are fully guaranteed by the Government. With effect from 29 March 2021, eligible Enterprises must have been in operation for at least three months in Hong Kong as at 30 June 2020, and have suffered at least a 30% decline in sales turnover in any month since February 2020 (“Affected Period”) compared with the monthly average of any quarter from January 2019 to June 2020 (“Reference Period”), provided that the Affected Period must not be earlier than the Reference Period.
With effect from 29 March 2021, the maximum loan amount for each eligible Enterprise is the total amount of employee wages and rents for 18 months or HK$6 million, whichever is the lower. The maximum guarantee period is eight years. The application period for the Special 100% Loan Guarantee is until 31 December 2021.
Please refer to the SME Financing Guarantee Scheme Factsheet for detailed features of the Special 100% Loan Guarantee and the enhancements introduced.
Enterprise should contact the Lenders to apply for the loan or credit facility. The Lenders will review the application before submitting the guarantee application form and relevant supporting documents to the HKMCI for review and approval.
A list of the Lenders is available here.
For general enquiries about the Scheme, please contact:
1. the Lenders; or
2. the HKMCI
Scheme Hotline: 2536 0392
Scheme Enquiry: firstname.lastname@example.org
This Scheme is operated by the HKMCI and is subject to the relevant terms and conditions. The copyright to the contents of this document is owned by the HKMCI.
Last Update Date: 30 April 2021