Hong Kong Govt Enhances 100% Loan Guarantee Scheme

​HKMC Insurance, a subsidiary of the HKMC (Hong Kong Mortgage Corporation), has announced enhancements to the 100% Loan Guarantee Product under the SME Financing Guarantee Scheme (SFGS).

The 100% Guarantee Product was launched in April, under which the government committed to providing a full guarantee on loans to eligible SME borrowers, subject to total guarantees of HKD 50 billion.

The total guarantee commitment is being raised to HKD 70 billion, according to HKMC Insurance, which administers the 100% Scheme.

The maximum amount of loan per enterprise under the scheme is also being raised to 12 months of employee wages and rents (up from six months), or HKD 5 million (HKD 4 million) – whichever is lower.

In addition, the maximum repayment period of the guaranteed loans is increased from 3 years to 5 years.

Borrowers with existing loans under the Special 100% Loan Guarantee can apply to their lending banks to increase the loan amount and/or extend the repayment period, HKMC Insurance said. “In general no additional supporting documents will be required.”

The enhanced scheme will start receiving applications from this Friday (18 September).

Separate 80% and 90% Guarantee Products are also available to enterprise borrowers. Both of these schemes were also enhanced in May.