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Government funding

SFGS — SME Financing Guarantee Scheme

Not a grant but a government-backed loan guarantee: HKMC Insurance guarantees 80% or 90% of what you borrow from a bank, so the bank dares to approve a loan it might otherwise reject. The 80% product goes up to HK$18M and the 90% product up to HK$8M (combined cap HK$18M). You apply through a participating bank, and approval still rests on the bank's credit judgement.

This fits you if

You run a non-listed SME operating in Hong Kong and need working capital, equipment finance, or refinancing, but the bank finds your collateral too thin — use the government guarantee to top up your credit.

This is not for you if

You want a grant you don't repay (see BUD or the tech schemes); or you are a listed company or a money lender (not eligible).

Key figures
80% product
80%

guarantee · up to HK$18M · up to 10 years[S35]

90% product
90%

guarantee · up to HK$8M · up to 8 years[S35]

Stopped
The special 100% loan closed at the end of 2024-03[S35]
HKMC Insurance, part of the Hong Kong Mortgage Corporation (HKMC)Year-round
Up to HK$18M under the 80% guarantee product / up to HK$8M under the 90% guarantee product (combined cap HK$18M)Match: Government guarantee of 80% / 90% (50–70% products also available)
Deadline / window
Year-round — apply through a participating bank (the 80% product's application period has been extended to end of 2028-03)
Duration
Guarantee period: up to 10 years for the 80% product / up to 8 years for the 90% product
Company age
The 80% product requires ≥1 year operating in Hong Kong; the 90% product has no minimum operating period
Turnover
The scheme itself sets no turnover or headcount threshold
For whom
Non-listed companies, sole proprietorships or partnerships operating in Hong Kong and registered under the Business Registration Ordinance; not money lenders or parties related to the lender
Documents
  • Submitted through the participating bank: business registration certificate, financial statements, etc.
  • Anyone holding >50% must provide a personal guarantee
Official pageHow to apply

Two tiers — which to pick?

The higher the guarantee ratio, the lower the per-loan cap; the two share a combined cap of HK$18M.

80% guarantee product
Up to HK$18M with a guarantee period of up to 10 years; revolving or non-revolving, HKD or foreign currency; for asset purchase, working capital, or refinancing. Requires ≥1 year operating in Hong Kong. Annual guarantee fee up to 0.45%.
90% guarantee product
Up to HK$8M with a guarantee period of up to 8 years; term loans only, HKD only; no minimum operating period, aimed at newer or smaller businesses. Fee up to 0.36% for those operating >3 years, up to 0.45% for ≤3 years.
How to apply
  1. 1

    Find a participating bank

    You don't apply for SFGS with HKMC directly — it goes through a participating bank or lending institution.

    Pitfall: Thinking you apply to the government and knocking on the wrong door.

  2. 2

    Choose the tier

    Pick the 80% or 90% product based on your operating history and the amount you need; mind the combined cap of HK$18M.

    Pitfall: Any guarantee you have already used counts against the combined cap.

  3. 3

    Bank runs a credit assessment and submits the guarantee application

    The bank collects the business registration certificate and financial statements; anyone holding >50% must give a personal guarantee.

    Pitfall: A guarantee does not mean guaranteed approval — the bank can still decline on credit grounds.

  4. 4

    Approved → loan drawn down (guarantee fee paid)

    The guarantee fee can be paid annually or prepaid in full (the prepaid portion may be rolled into the financing); relief tools such as principal repayment holidays are also available.

Next steps
  1. 01Short on working capital → first ask whether your account or lending bank participates in SFGS, and discuss using the guarantee to top up your credit.
  2. 02Newer or smaller → go for the 90% product (no minimum operating period); longer-established and needing a larger amount → the 80% product.
  3. 03Don't confuse it → this is a guarantee for a loan you repay, not a grant; to expand into markets, see BUD.
Related pagesGovernment funding overview: which one should you apply for?Turn banks into your customersOpen a corporate bank accountIncorporate a Hong Kong company

Figures per HKMC's SFGS Factsheet (effective 2024-11-18). The 80% product's application period was extended to end of 2028-03 by a 2025 press release; the 90% product's latest deadline follows the newest official Factsheet.

The special 100% loan guarantee stopped taking applications at the end of 2024-03 — don't treat it as a live scheme.

Sources