The Hong Kong Monetary Authority has announced improvements to the SME Financing Guarantee Scheme, including a 12-month principal moratorium and extended loan guarantee periods. These enhancements, part of the Chief Executive’s 2024 Policy Address, are designed to support small and medium enterprises (SMEs) facing economic challenges.
The revamped SFGS offers a principal moratorium option, allowing borrowing enterprises to defer principal repayments for up to 12 months, with the application period spanning until November 17, 2025. Additionally, the loan guarantee periods for the 80% and 90% Guarantee Products are extended by three years, now covering ten years and eight years respectively.
New loans under these products will also benefit from partial principal repayment options. These changes are aimed at alleviating financial pressures on SMEs and providing them with the necessary flexibility to navigate the ongoing economic restructuring.