The Innovation Technology Commission launched the Technology Voucher Programme (TVP) as a pivot basis in Nov 2016, and increased the cumulative maximum to HK$ 400,000 and made the scheme regular in Feb 2019. Due to COVID-19 epidemic, the TVP Fund further enhanced in the Budget 2020: maximum raised to HK$ 600,000, subsidy ratio raised to 3/4 and maximum application number is 6. The TVP is one of the most popular government funding schemes, however, many applicant companies reflect that the process is quite complex. BizMagnet TVP Consulant prepares 3 TVP methods to share with those like to apply for the TVP. Don’t miss it if you wanna be the next TVP successful story.
1. Prepare your TVP application documents
According to the TVP application guidance, only Hong Kong companies with substantive business (limited company or unlimited) can apply for the fund, and applicants should attach the proof of the business during application. These documents include receipts, invoices, MPF records in recent 3 months, business registration certificate, shareholding structure etc. Due to the COVID-19 epidemic, the ITC processes applications much slower in 2020. Therefore, applicants should collect monthly the relevant documents when they are waiting for the result. If documents, such as the BR, expire before the application result release, applicants should renew them. The ITC will request for document update before the approval. Getting well-prepared makes you response fast.
Forecast: TVP 2021 Trend
2. Prepare the required TVP quotations
Another barrier for applicants is the requirement of TVP quotations. According to Government standard procurement process, project over $50,000 should provide 3 written quotations; and project over $300,000 should provide 5 written quotations. For each quotation, it should include a probity and non-collusive certificate. In general, the project should go to the lowest fee supplier. Otherwise, the applicant has to provide sufficient reasons. All these are not easy to private companies, but there are some standard methods for the government departments to fulfil. For example, they arrange supplier briefing, tendering in mainstream media, or invite for quotations. These are all open to public, and applicants should take good reference.
3. Give a proper TVP proposal
The last stage of the TVP application is to write a proposal. It is just a blank sheet in front of you, what should you begin with? Let us review the TVP vetting requirement: 1. Relation between the project and the business 2. Reasonable project budget 3. Supplier record. Putting down point 3, a proposal has to show how the IT project helps the business to the ITC, say improving applicant’s service and competitiveness. So this proposal should point out the existing problems and performance, as well as the expected improvement after project implementation. For example, how fast the production boosts up, or how much manpower reduced etc. The government does not care if it makes big money, indeed.
From social unrest last year, to COVID-19 this year, SMEs have a huge demand in government funding. However, the application and result may not grace everyone, for instance, the very hot D-Biz. Once you capture the essence of the TVP Fund, get yourself familiar with the procedure, and apply the above 3 TVP methods, it will be much easier to get the Fund. BizMagnet TVP consultancy focuses on government funding schemes and welcome for inquiries.
Further reading: TVP for dummies 2022