Nov. 4 – The government of Hong Kong Special Administrative Region is set to implement the Loan Guarantee Scheme starting November 6 to help small and medium enterprises (SMEs) cope with the global credit crisis.
Currently, ten participating lending institutions (PLI) are qualified to accept applications for the enhancement measures. The sub-ceilings for the Business Installations and Equipment Loans and Working Capital Loans (WCL) will be cancelled in addition to an overall maximum amount of guarantee for each SME to be maintained at HKD6 million.
The maximum guarantee period for WCL will be extended to five years and each SME will be allowed to avail of a guarantee again after full payment of the loan backed by the guarantee.
This means that each SME is qualified to a maximum amount of guarantee of HKD12 million in its lifetime. The government is also increasing the ceiling of guarantee exposure for each PLI from HKD1.25 billion to HKD1.5 billion for granting loans.