SME loan guarantee scheme to end

The scheme to cease effect this yearend, as the lending environment has improved.

More than 37,000 applications have been approved under the $100 billion Special Loan Guarantee Scheme, involving a total loan amount of $90 billion.

Secretary for Commerce & Economic Development Rita Lau told legislators on Wednesday the scheme has benefited 20,000 firms, of which 95% are small and medium-enterprises, and helped preserve 330,000 jobs, according to a government report.

She said the Government has extended the scheme's application period until year's-end. After that it will end, as the lending environment has greatly improved and the number of applications has reduced.

The existing SME Loan Guarantee Scheme, including the enhancement measures introduced in November 2008, will continue to render appropriate assistance to SMEs, she said.