HKMC Insurance Limited (HKMCI), a wholly-owned subsidiary of the Hong Kong Mortgage Corporation Limited, announces that, the enhancement measures to the 80% and 90% Guarantee Products under the SME Financing Guarantee Scheme (SFGS) as included in the second round of the Anti-epidemic Fund announced by the Government in April 2020 takes immediate effect (29 May). The measures include raising the maximum loan amount of the 80% and 90% Guarantee Products and extending the eligibility coverage to listed companies in Hong Kong, and will last for 12 months. In addition, both the existing guaranteed loans and new applications are eligible for an interest subsidy for a maximum period of 12 months, the payments of which will start to be made by the end of June this year.
The Financial Secretary, Mr Paul Chan, said, “Businesses of many local enterprises are seriously affected by the COVID-19. In light of this, in addition to the Special 100% Loan Guarantee launched earlier, we have further enhanced the 80% and 90% Guarantee Products under the SFGS, so that more enterprises affected by the COVID-19 can apply for guaranteed loans to alleviate their cash flow burden and tide over the current economic challenges.”
Under the enhancement measures, the maximum loan amount per enterprise for the 80% Guarantee Product is increased from HK$15 million to HK$18 million, while that for the 90% Guarantee Product is increased from HK$6 million to HK$8 million. All borrowing enterprises under the scheme can benefit from the enhancements. The eligibility coverage of both guarantee products is extended to listed companies in Hong Kong. In addition, for the requirement of personal guarantee by individual shareholder(s) under the Special 100% Loan Guarantee, applicable percentage of equity interest is reduced from over 70% to over 50%, which is in line with that for the 80% and 90% Guarantee Products.
The Government will provide interest subsidy for the 80% and 90% guaranteed loans, with the amount of subsidy subject to a cap of 3%. Each loan is entitled to an interest subsidy for a maximum period of 12 months. HKMCI has reached a consensus with the Government and the lenders on the implementation details as follows:
The payment of interest subsidy will be automatically deposited into relevant bank accounts, and no application is required. This will provide more expeditious supports to the borrowing enterprises. For public enquiries, please call the SFGS Hotline at 2536 0392.
HKMC Insurance Limited
29 May 2020