Hong Kong unveils new advance funding arrangement for SMEs

This aims to encourage the private sector to conduct in-house R&D works.

The Innovation & Technology Commission has revealed its advance funding arrangement under the Enterprise Support Scheme to ease cash flow requirements faced by small and medium enterprises (SMEs) and startups, an announcement revealed.

Under the new plan, the commission will disburse an advance payment of up to 50% of the matching fund approved under the Innovation & Technology Fund for the first six months or up to $500,000.

The arrangement operates on the condition that the recipient company contributes the same amount on a matching basis. The remaining payment will be disbursed in instalments upon the recipient company fulfilling agreement obligations.

The commission has begun accepting applications for the grant last 1 February. The news release stated that this will further encourage the private sector to invest in research and development (R&D) in conducting in-house R&D work.