Everyone know that Hong Kong is a city where consistently ranked among the top in the world in term of economic competitiveness, Hong Kong has a simple and easy business set-up process, Hong Kong is one of the most simple tax system with low tax rates in the world… BUT what’s more……Hong Kong Government value a lot the contribution of small and medium enterprise (“SMEs”) and therefore, launch numerous grants to provide a relief for SMEs during their tough period, to support the development of SMEs, and to encourage the expansion of SMEs, etc…. The four major government grants are:
1.SME Loan Guarantee Scheme (“SGS”)
Overview : SGS provides loan guarantee to SMEs to help them secure loans from the banks and institutions in Hong Kong and for
- buying business installations and equipment; and/or
- meeting working capital needs of general business uses.
A new relief measure is introduced under the SGS. Both existing and new SMEs borrowers under the SGS may apply to the banks and institutions in Hong Kong for principal moratorium of up to 6 months which is renewable, subject to a maximum of 12 months in total.
2.SME Export Marketing Fund (“EMF”)
Overview : To encourage SMEs to expand their trade markets outside Hong Kong, the Hong Kong Government provides financial assistance to SMEs for
- participating in export promotion activities
The scope of business missions under the EMF has been expanded to cover business missions organized by the Government, Government-related organizations or non-profit distributing trade and industrial organizations for the purpose of market expansion.
3.Trade and Industrial Organization Support Fund (“TSF”)
Overview : To provide financial support to non-profit-distributing organizations to implement projects which aim at enhancing the competitiveness of non-listed Hong Kong enterprises in general or in specific sectors.
4.Export Credit Insurance to Support Exporters (“ECIC”)
Overview : ECIC provides a wide range of insurance facilities for Hong Kong exporters of goods and services trading on credit terms with overseas buyers. The facilities are to cover non-payment risks for goods exported and services rendered arising from commercial and political events and help them conduct export business with peace of mind.
