Enhanced SME Financing Guarantee Scheme officially in effect

The enhancements aim to alleviate repayment pressures for SMEs seeking loans.

HKMC Insurance announced that the enhancements to the SME Financing Guarantee Scheme (SFGS) have already taken effect as of 18 November.

The changes allow borrowing enterprises under the SFGS to apply for a principal moratorium for up to 12 months, for both existing and new loans.

In addition, the maximum loan guarantee periods of the 80% and 90% Guarantee Products will both be extended by three years, to ten years, and eight years respectively. 

The partial principal repayment options will be offered to new loans under the two guarantee products. 

The application period will end on 17 November 2025.