98% of Hong Kong’s firms are small and medium-sized enterprises (SMEs) or startups. To help SMBs and startups during the COVID-19 epidemic, the Hong Kong government has implemented some funding programs to facilitate the development of these smaller enterprises via financing and loan guarantees.
This article will provide five sorts of finance possibilities for Hong Kong’s new company owners and entrepreneurs to consider. In addition to register your business name you will be glad to find out this information if you dream of starting your own business but are short on finances.
SME Financing Guarantee Scheme
The SME Financing Guarantee Scheme (SFGS) is a loan for SMEs whose income has dropped owing to COVID-19. Program aids employee salaries and rents to avoid company closures and layoffs. The SFGS applies to all small and medium-sized businesses, including retail establishments, travel agencies, restaurants, and entertainment facilities.
HK$2 million or six months of employee pay and rent is the maximum borrowing amount. It’s a loan. Implementing interest rates.
- Have been in operation for at least three months since December 2019
- Have seen a loss in business of at least 30 percent in each month since February 2020
SME Loan Guarantee Scheme
This program is for SME cash flow concerns due to COVID-19. SGS gives loan guarantees to SMEs that can’t acquire bank loans for equipment or operating capital. The government will guarantee SME loans.
You may request 50 billion HKD. Each lender has a different loan-application procedure. Before applying, contact each school.
- Must be a small to medium-sized enterprise inside the Hong Kong Special Administrative Region
- Register the majority of your Hong Kong business under the Business Registration Ordinance.
- Not affiliated with a participating lender (PLI)
- Not a lending enterprise
SME Export Marketing Fund
The Export Marketing Fund (EMF) helps SMEs increase their global exports. It includes Google Ads, e-commerce, mobile applications, international trade fairs, and local exhibitions. You may submit up to HK$800,000 and an unlimited number of applications.
- Your company must have a physical presence in Hong Kong.
- If your SME is engaged in manufacturing, it must employ no more than 100 locals.
- If it does not fit within the category of manufacturing, you require no more than 50 locals.
HKMC launched the Microfinance Scheme as cooperation between Hong Kong banks and NGOs. This program will train and manage your loan application if you’re an aspiring entrepreneur without the requisite skills and competence. You may also obtain certification and skills.
The maximum loan length is five years with a 12-month grace period.
- You must be at least 18 years old and an adult resident.
- You must not be insolvent.
- Your company might be either new or established.
- No more than five years have passed since the inception of your organization.
Technology Voucher Program (TVP)
TVP seeks to meet the requirements of local businesses by reforming their business processes via the use of technical services and solutions that might increase productivity, modernize, or modify the applicant’s business processes. Each firm may get up to HK$600,000 and up to 6 sponsored projects. The Technology Voucher Program Administrative Funding System accepts applications 365 days a year. Here you may see the official website of the Information and Technology Commission for further information about the application.
- Registered and incorporated in Hong Kong
- Not a firm listed in Hong Kong
- Not a government-funded institution
- Not a subsidiary of any organization supported by the government
- With substantial economic activity in Hong Kong relating to the proposed project
How Do I Select the Finest Grant for My Business?
Choose the grant or program with the best odds. Choose a program that corresponds with your company’s needs and for which you’re confident filing a grant proposal to convince the authorities you’ll utilize the money well.
Too many grants might hurt your SME or startup. Find out how to easily make a company registration in Hong Kong.
Marziano is a seasoned tech expert with over 15 years of experience in the industry. Holding a Bachelor’s degree in Computer Science and multiple certifications, including CompTIA A+, Network+, and Cisco’s CCNA, he has a well-rounded and robust understanding of various aspects of technology.