HKMC Insurance Limited announced that enhancements to the SME Financing Guarantee Scheme (SFGS) will take effect from Friday (April 1).
To further alleviate the cash flow pressure of small and medium-sized enterprises during the time of the pandemic, the Financial Secretary announced in the 2022-23 Budget that the maximum loan amount per enterprise under the Special 100% Loan Guarantee will be raised from the total amount of employee wages and rents (Note 1) for 18 months to that for 27 months, subject to a ceiling of HK$9 million (originally HK$6 million), and the maximum repayment period will be extended from eight years to 10 years.
Eligible enterprises should have been operating for at least three months as of March 31, 2022, and have suffered at least a 30 percent decline in sales turnover in any month since February 2020 compared with the monthly average of any preceding quarter from January 2019 to March 2022 (Note 2).
In addition, the principal moratorium arrangement for the 80% Guarantee Product, the 90% Guarantee Product and the Special 100% Loan Guarantee of the SFGS will be extended by six months to a maximum of 30 months in total. 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.
The application period of the SFGS has been extended to June 30, 2023. Details are available on the SFGS webpage: www.hkmc.com.hk/sfgs.
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