FIDINAM Group has just released an article about the extension of the SME Financing Guarantee Scheme Loan Plan.
The Scheme aims at helping local small and medium-sized enterprises and non-listed enterprises to obtain financing from participating lenders for meeting their business needs so as to enhance their productivity and competitiveness in the rapidly changing business environment.
On 8th April 2020, with the rapid deterioration of the business environment following the outbreak and spread of the COVID-19, the Government announced further enhancements on the 80% and the 90% Guarantee Products to provide the enterprises with the much-needed financial support to ease their cash flow issues.
80% - 90% Guarantee Coverage under the Scheme
Eligible enterprises must have business operations in Hong Kong SAR and be registered in Hong Kong SAR under the Business Registration Ordinance (Chapter 310) and have good loan repayment records. Lending institutions and affiliates of the Lenders are not eligible for the Scheme.
SME Loan Plan Extended
On 2nd September 2020, the HKMC Insurance announced that the application period for the principal moratorium for the 80% Guarantee Product and the 90% Guarantee Product under the SME Financing Guarantee Scheme has been extended to March 31st, 2021. Under the new arrangement, the maximum duration of the principal moratorium is increased from 12 months to 18 months. The loan guarantee period can also be extended correspondingly. The arrangement aims to alleviate the cash flow pressure of small and medium-sized enterprises.
Is your company eligible for the SME Guarantee Scheme? How to apply?
Fidinam Can Help. Contact us - Info@fidinam.com.hk