Hong Kong's SME Loan Guarantee Scheme (SGS)
The SME loan guarantee scheme administered by the Trade and Industry Department of Hong Kong aims to help small and medium companies secure funding from banks in Hong Kong. The Hong Kong government will guarantee 50% of the total loan amount.
Unlike the other government funds which help startups, SME’s and new businesses access capital (BUD fund and the SME export fund), the application and approval process is with the lending institution directly.
The funding can differ between banks, however as a guide HSBC offer up to $12,000,000 HKD with a repayment period of 5 years. Do take note that this funding opportunity is a more traditional loan under a contract from your chosen bank.
If you are a non-listed enterprise registered in Hong Kong and have “substantive business operations in Hong Kong” you can apply. To prove this, you can include your Hong Kong Business registration details and proof of your MPF payments to staff. This guarantee scheme is available for both enterprises and SMEs.
Scope of the funding:
The loan funds can be used for working capital needs of the business.
Process and Application:
If you are interested in the government securing part of your loan, you should speak directly with your chosen bank. But please note, the bank is not obliged to follow through on the offer after going through their regular due diligence. Following that, there are applications required directly to the Hong Kong government.
For further reference, you can see the guidelines and application forms.
Not right for your business?
If this funding option is not right for you, check out our overview of other government backed startup, SME and new business funding options.
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