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Eligibility for SME Financing Guarantee Program
2020-09-05 | Author:
The Hong Kong government recently announced that it will optimise the SME financing guarantee scheme. For loans with 80% and 90% guarantees, the maximum loan amount has been increased from 15 million yuan to 18 million yuan and from 6 million yuan to 8 million respectively. The preferential interest rate under the 100% loan guarantee will not exceed 3%. The 100% guaranteed loan announced earlier has also been raised from 2 million yuan to 4 million yuan.
Eligibility for SME Financing Guarantee Program
- Business registration before 2019
- Operating for at least 3 months
- A decline of at least 30% in average monthly turnover compared to the average monthly turnover in the highest performing quarter of last year.
Example: How to calculate a turnover decline of 30% or more compared with the average turnover in the highest quarter last year:
1. Pick the quarter with the highest turnover from the following dates
|
January 1, 2019 to March 31, 2019 |
|
April 1, 2019 to June 30, 2019 |
|
July 1, 2019 to September 30, 2019 |
|
October 1, 2019 to December 31, 2019 |
2. Calculate the average monthly turnover in the highest quarter. See example:
|
2019 |
Quarterly total turnover (HK $) |
|
January 1 to March 31, 2019 |
2.7M |
|
April 1 to June 30, 2019 |
3.0M |
|
July 1 to September 30, 2019 |
2.3M |
|
October 1 to December 31, 2019 |
1.5M |
In the above example, the average monthly turnover of the highest quarter is calculated as follows:
HK $ 3,000,000 ÷ 3 =HK $ 1,000,000.
Now compare this average monthly turnover from the highest performing quarter of 2019 with the average monthly turnover of 2020. If you can demonstrate a fall of 30% or more, then you meet the application requirements.
Total loan limit
|
80% Guarantee |
HK$ 18,000,000 |
|
90% Guarantee |
HK$ 8,000,000 |
|
100% Guarantee |
HK$ 4,000,000 |
The maximum loan amount for each application is the sum of the salaries and rents of the employees of the relevant company for six months, or the maximum loan amount, whichever is lower.
For example:
|
Under 100% guarantee |
Monthly employee salary | Rent | Total (monthly employee salary +rent) x 6 months |
Maximum loan amount |
|
Example A |
HK$100k | HK$100k | HK$ 1.2M |
HK$ 1.2M |
|
Example B |
HK$200k | HK$200k | HK$ 2.4M |
HK$ 2.0M |
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