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Learn about Incorporating > Information on Hong Kong > SME Funding Schemes

Small and medium enterprises (SMEs) are the backbone of Hong Kong's economy, and the driving force of our economic development. They play an important role in the process of economic restructuring. SMEs comprise over 98% of business establishments in Hong Kong and employ about 60% of the working population in the private sector. The Government of the Hong Kong Special Administrative Region (HKSAR) attaches great importance to supporting Hong Kong's SMEs.

To support the SMEs to cope with the economic developments, the Chief Executive, in his Policy Address in October 2001, accepted the Report on Support Measures for SMEs submitted to him by the SME Committee in June of the same year, and set aside $1.9 billion to establish four funding schemes with a total commitment of $7.5 billion to help SMEs rise to new challenges and opportunities.

The four funding schemes, which were set up in December 2001/January 2002, are:
    SME Loan Guarantee Scheme (SGS)
    SME Export Marketing Fund (EMF)
    SME Training Fund (STF)
    SME Development Fund (SDF)
Maximum amount of guarantee/grant an SME may receive

$4 million :

business installations and equipment loan guarantee: $2 million

associated working capital loan guarantee: $1million

accounts receivable loan guarantee: $1million

$80,000 Employees' training : $20,000 Employers' training : $10,000 Not applicable
Level of guarantee / grant for each successful application

business installations and equipment loan guarantee and accounts receivable loan guarantee: 50% of the respective approved loan

associated working capital loan guarantee: 50% of the co-related business installations and equipment loan guarantee or 50% of the approved loan, whichever is the less

$30,000 or 50% of the total expenditure on fundable items, whichever is the less 70% of the training expenses $2 million, or 90% of the project costs, whichever is the less

Details information and application forms can be found at SME Funding Schemes Web Site.