More Relief For SMEs

The Mortgage Corporation Insurance Limited today introduced the 80% Guarantee Product of the SME Financing Guarantee Scheme to provide immediate support to small and medium enterprises (SMEs).

SME borrowers may apply to their lenders under the guarantee scheme for principal moratorium of up to six months which is renewable, subject to a maximum of 12 months in total.

During the period, only interest payments have to be made.

The guarantee period can be extended correspondingly, but should not exceed the maximum guarantee period of seven years, with guarantee fee payable to cover the extension of the guarantee period.

The new measure, lasting for one year, is applicable to existing and new borrowers under the SME Financing Guarantee Scheme.

Financial Secretary Paul Chan said the relief measure can help SMEs ease their cash flow pressure.

“We also hope that lenders can make use of the new measure to assist SMEs in getting through difficult times."

Meanwhile, the Government will consolidate the services of existing SME centres under the Trade & Industry Department, the Trade Development Council, the Productivity Council and the Science & Technology Parks Corporation to provide an integrated service.

The service will be available from October 1 for SMEs to obtain the necessary information of all funding schemes at any service point.

A team will also be established to reach out to SMEs to promote these funding schemes.

The Government will streamline the application procedures for various funding schemes to better meet the needs of SMEs.