Gov’t injects $200m into BUD Fund to boost SME competitiveness

The funding ceiling of the “Easy BUD” will be raised to $150,000 per application.

The government is injecting $200m into the Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund) as part of new measures to support the competitiveness of small and medium-sized enterprises (SMEs).

In line with this, the funding ceiling of the “Easy BUD” scheme will be raised to $150,000 per application, Financial Secretary Paul Chan said during his 2026-27 Budget Speech.

In addition, the government will provide targeted support for enterprises adopting artificial intelligence applications.

Separately, the Hong Kong Export Credit Insurance Corporation will introduce a pilot scheme this year to offer insurance protection for SMEs exporting to higher-risk buyers. The government will also expand support under the SME Financing Guarantee Scheme.

“We have extended the application period for the 80% Guarantee Product to the end of March 2028 and also extended the application period for the principal moratorium arrangement to mid-November this year,” Chan said.

The total loan guarantee commitment under the scheme will increase by $20b.

In the food sector, he noted that the Centre for Food Safety will waive food product certification fees for two years.

“Besides, we will introduce a new unified brand for local agricultural and fisheries products in the middle of this year, supported by a certification, testing, and traceability mechanism,” Chan added.