Budget 2021: Special 100% Loan Guarantee


Announced in the 2021-22 Budget, the government will enhance the Special 100% Loan Guarantee of the SME Financing Guarantee Scheme (SFGS)1 to relieve further SMEs’ cash flow pressure. The improvement measures are as follows:

  1. Maximum amount of loan: the total amount of employee wages and rents for 18 months, or HK$6 million, whichever is lower
  2. Maximum repayment period: 8 years
  3. Maximum principal moratorium arrangement: 18 months

The lowest rate is about 2.75% p.a.

The government is arranging to implement the above measures with lending institutions, and the roll-out date is yet to be announced. If you are interested in applying for the Special 100% Loan Guarantee, please note the following:

  • Application period until 31st December 2021
  • Eligible enterprises should have been in operation for at least three months before 30th June 2020
  • Comparing with the monthly average of any quarter from early 2019 to mid-2020, the turnover should have declined by at least 30% decline in any month since February 2020

BizMagnet will provide related referral services. Contact us if you would like to obtain the Special 100% Loan Guarantee.

More capital services

Besides the Special 100% Loan Guarantee application, BizMagnet provides also variety of capital services, such as government fund consultation and MPF referral etc. Flexible cash-flow is essential nowadays business. Remember that cash-flow is the blood of an enterprise. Make sure your enterprise abundant cashflow and please contact us to know more.

  1. “Enhancements to Special 100% Loan Guarantee”, https://www.info.gov.hk/gia/general/202102/24/P2021022400395.htm

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