In a decisive move to bolster small and medium-sized enterprises (SMEs), the Hong Kong Monetary Authority (HKMA) has unveiled critical enhancements to the SME Financing Guarantee Scheme (SFGS). This initiative is designed to provide SMEs with substantial economic support as they navigate through turbulent times.

Extended Support for SMEs Through 2028

The HKMA has announced an extension of the application period for the 80% Guarantee Product under the SFGS, now available until March 2028. This prolongation is a clear indication of the Hong Kong government's dedication to strengthening financial resources for businesses that form the backbone of the region's economy.

Boosting Financial Assistance with Increased Guarantees

To further assist SMEs, the total loan guarantee commitment will rise by HK$20 billion, totaling a substantial HK$310 billion. This increase underscores the government's commitment to empowering businesses during these challenging times and is a strategic move to help them thrive despite economic hurdles.

Easing Loan Repayment Pressures with Extended Moratoriums

The principal moratorium, originally set to conclude on November 17, 2025, has also been extended to November 17, 2026. This crucial adjustment allows eligible enterprises to apply for a moratorium period of up to 12 months either before or after the original deadline. For loans drawn post-November 2025, businesses can still apply for a 12-month moratorium, easing the immediate burden of loan repayments.

Implementation: What Businesses Need to Do Now

HKMC Insurance Limited, a subsidiary of the Hong Kong Mortgage Corporation, will oversee these new measures in coordination with participating lenders. Starting November 1, 2025, SMEs are encouraged to reach out to their lenders to discuss specific arrangements to capitalize on the extended scheme.

A Timely Intervention for Economic Resilience

As the global economy grapples with significant uncertainties, these measures signify a proactive approach from the Hong Kong government to stabilize its business community. The extension of the SFGS is a strategic initiative aimed at ensuring that the vital SME sector continues to receive the support it needs to thrive amidst economic challenges.