Hong Kong – The Hong Kong Monetary Authority has announced new enhancements to its SME Financing Guarantee Scheme, where the application period for the 80% Guarantee Product, the 90% Guarantee Product and the Special 100% Loan Guarantee will be extended to 30 June, 2023.
The maximum loan amount per enterprise under the Special 100% Loan Guarantee will be raised from the total amount of employee wages and rents for 18 months to that for 27 months, subject to a ceiling of HK$9m, originally HK$6m, and the maximum repayment period will be extended from eight years to ten years.
In addition, HKMC Insurance Limited (HKMCI) will also extend the principal moratorium arrangement under the SFGS by six months to a total of 30 months, and the application period for principal moratorium will be extended to end-December 2022.
“An option for borrowers to resume making partial principal repayment for one year will be provided, allowing borrowers to resume normal repayment gradually if they are willing and capable. Whether a borrower chooses the principal moratorium arrangement or the partial principal repayment option, the loan tenor and the guarantee period will generally be extended accordingly,” the authority said.
