Relief Arrangements under SME Financing Guarantee Scheme¹

The enhancements to the SME Financing Guarantee Scheme (SFGS) (the "Scheme") as set out in the "The Chief Executive's 2024 Policy Address" took effect on 18 November 2024, with the objective to alleviate the repayment pressure on business borrowers and help them address challenges encountered during economic restructuring.

Scope of the relief arrangement

The relief enhancements include
i) the launch of 2024 Principal Moratorium ("2024-PM")² and
ii) extension of the Partial Principal Repayment ("PPR")³ options to new SFGS non-revolving facilities from 18 November 2024.

Features of 2024-PM

Principal moratorium for up to 12 months
Eligible products: term loan, revolving loan and trade facility⁴
Application period: 18 November 2024 to 17 November 2025

Features of PPR

Based on the requirements of the transition period or repayment resumption plan, to repay a portion of the original principal repayment amount ("OPRA") each month during a specified period⁵.
Maximum up to 48 months in aggregate

How to Apply

If you’re having SFGS80 & SFGS90 facilities, you can contact your Relationship Manager for application.
If you’re having Business Installment Loans (SFGS) and SFGS100 facilities, please complete the application form, visit our Business Banking Centre or call our dedicated SME Financing Hotline at 2748 8278 for application details.

Application Form

We also encourage Business Instalment Loan (SFGS) and SFGS100 customers to download and complete the application form in advance to make your application simpler:

Reminder : Please ensure your correspondence address recorded with us is up-to-date as we shall inform you the application result by post only.

Reminder: "To Borrow or not to borrow? Borrow only if you can repay!"

Note:

General eligibility criteria for relief arrangement
- Not in the process of ceasing operations, an undischarged bankrupt or dissolved, nor subject to any winding up or bankruptcy petition or proceedings; and
- the amount of indebtedness shall not be increased and shall be amortised (i.e. bullet repayment structure is not allowed) after subsisting 2024-PM or PPR period; and
- any outstanding interest payments, overdue penalty interests and late charges shall be fully settled before 2024-PM, PPR or extension of repayment term takes effect.
Additional eligibility criteria for 2024-PM:
- Application must be received by the bank from 18 November 2024 to 17 November 2025 (both dates inclusive); and
- no outstanding default for more than 30 days.
Additional eligibility criteria for PPR:
- The relevant SFGS Application Form for such facility (a) was received by the bank on or before 30 September 2023 and submitted to HKMCI by 31 October 2023, or (b) is received by HKMCI on or after 18 November 2024; and
- no outstanding default for more than 60 days.
Deferment of loan principal repayment:
- Term Loan: 6 months (renewable) or 12 months
- Revolving Loan: not more than 6 months, maximum 12 months in total
- Trade Loan: not more than 90 days, maximum 12 months in total
PPR options:
- 10% of the OPRA for 12 months
- 20% of the OPRA for 18 months
- 50% of the OPRA for 30 months
- Other PPR arrangement approved by the bank

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