Eligibility for SME Financing Guarantee Program (image 1)

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Eligibility for SME Financing Guarantee Program

2020-09-05 | Author: OneDay(搵地)

The Hong Kong government recently announced that it will optimise the SME financing guarantee scheme. For loans with 80% and 90% guarantees, the maximum loan amount has been increased from 15 million yuan to 18 million yuan and from 6 million yuan to 8 million respectively. The preferential interest rate under the 100% loan guarantee will not exceed 3%. The 100% guaranteed loan announced earlier has also been raised from 2 million yuan to 4 million yuan.


Eligibility for SME Financing Guarantee Program

  1. Business registration before 2019
  2. Operating for at least 3 months
  3. A decline of at least 30% in average monthly turnover compared to the average monthly turnover in the highest performing quarter of last year.


Example: How to calculate a turnover decline of 30% or more compared with the average turnover in the highest quarter last year:

1. Pick the quarter with the highest turnover from the following dates

January 1, 2019 to March 31, 2019

April 1, 2019 to June 30, 2019

July 1, 2019 to September 30, 2019

October 1, 2019 to December 31, 2019



2. Calculate the average monthly turnover in the highest quarter. See example:


Quarterly total turnover (HK $)

January 1 to March 31, 2019


April 1 to June 30, 2019


July 1 to September 30, 2019


October 1 to December 31, 2019


In the above example, the average monthly turnover of the highest quarter is calculated as follows:

HK $ 3,000,000 ÷ 3 =HK $ 1,000,000.

Now compare this average monthly turnover from the highest performing quarter of 2019 with the average monthly turnover of 2020. If you can demonstrate a fall of 30% or more, then you meet the application requirements.


Total loan limit

80% Guarantee

HK$ 18,000,000

90% Guarantee

HK$  8,000,000

100% Guarantee

HK$  4,000,000

The maximum loan amount for each application is the sum of the salaries and rents of the employees of the relevant company for six months, or the maximum loan amount, whichever is lower.


For example:

Under 100% guarantee

Monthly employee salary Rent Total (monthly employee salary +rent) x 6 months

Maximum loan amount

Example A

HK$100k HK$100k HK$ 1.2M

HK$ 1.2M

Example B

HK$200k HK$200k HK$ 2.4M

HK$ 2.0M

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