SME Financing Guarantee Scheme

Bank of China (Hong Kong), committed to providing continuous support to local SMEs, has joined the "SME Financing Guarantee Scheme" ("SFGS")1 launched by HKMC Insurance Limited("HKMCI"). We are pleased to offer flexible lending solution to meet your financing needs.

 

Product Features 

  80% Guarantee Product2 90% Guarantee Product2 Special 100% Loan Guarantee
Business Operation Business has been in operation for at least 1 year in Hong Kong No business operation history requirement
  • Business has been in operation for at least 3 months in Hong Kong as at end June 2020
  • Suffered at least a 30% decline in sales turnover in any month since February 2020 compared with the monthly average of any quarter from January 2019 to June 2020.
Maximum Loan Amount3 HK$18 million HK$8 million HK$6 million or total amount of wages and rents for 18 months, whichever is lower
Maximum Guarantee Period 7 years 5 years 8 years
Maximum Principal Moratorium4 18 months
(Allow the Borrower to pay interest only in the first 6 months after the starting date of the Facility. In addition, the borrower can apply for principal moratorium during the guarantee period. The maximum principal moratorium is 18 months in aggregate)
18 months
(Allow the Borrower to pay interest only in the first 12 months after the starting date of the Facility. In addition, the borrower can apply for principal moratorium during the guarantee period. The maximum principal moratorium is 18 months in aggregate)
18 months
(The Borrower can apply for principal moratorium up to 18 months in aggregate)
Loan Type5
Term Loan, Revolving Credit Facility6
Term Loan Term Loan
Interest Rate Offer Provide interest subsidy for the Facility, the interest subsidy is the Facility’s annual interest rate minus 2.75%7, subject to a cap of 3%. Each eligible Facility is entitled to interest subsidy for 12 months at maximum in a one-year subsidy period 2.75%7
Offers
  • Guarantee fee8 rebate up to HK$100,000
  • Waiver of application fee and account opening fee
  • Waiver of guarantee fee8
  • Waiver of application fee and account opening fee

 

Reminder: To borrow or not to borrow? Borrow only if you can repay!

Application Hotline +852 2105 8288

Remarks:

  1. For details of the "SME Financing Guarantee Scheme", please visit the website of the Hong Kong Mortgage Corporation Limited (“HKMC”) at www.hkmc.com.hk or contact Bank of China (Hong Kong) Limited (BOCHK).
  2. For 80% guarantee product and 90% guarantee product: applications received by the HKMCI on or before 31 May 2021, eligibility criteria is relaxed to cover listed companies in Hong Kong subject to personal guarantee by individual shareholder(s) directly or indirectly holding more than 50% of the equity interest of the listed companies.
  3. The enhancement measures to the 80% and 90% Guarantee Products under the SME Financing Guarantee Scheme (SFGS) as included in the second round of the Anti-epidemic Fund announced by the Government in April 2020 takes immediate effect. For applications of the 80% and 90% Guarantee Products received by the HKMCI on or before 30 June2022, the maximum facility amount per Enterprise is increased from HK$15million and HK$6 million to HK$18 million and HK$8 million respectively. Total loan amount is capped at HK$18 million for 80% guarantee product and 90% guarantee product, is subject to HKMCI announcements. The maximum facility amount per Enterprise under the enhancement measures to the Special 100% Loan Guarantee is increased from HK$5 million to HK$6 million with the application period until 31 December 2021.
  4. The application period for principal moratorium will until 31 December 2021.
  5. The relevant loan and credit facility cannot be used for repaying, restructuring or repackaging other loans borrowed from BOCHK or any third parties.
  6. "Revolving Credit Facility" includes revolving loan, overdraft and trade facilities.
  7. 2.75% is calculated at the Prime Rate of the HKMC minus 2.5% and is subject to adjustment due to change of the Prime Rate of the HKMC.
  8. Guarantee fee will be approved and determined by the HKMCI and is subject to the announcement made by the HKMCI. HKMCI provides waiver of guarantee fee for the Special 100% Loan Guarantee.

 

The above products, services and promotional offers are subject to the relevant terms and conditions of BOCHK. For more details, please contact BOCHK's staff. BOCHK reserves the right to amend, suspend or terminate the above products, services and offers, and amend their relevant terms and conditions at any time at its absolute discretion without prior notice. In case of any dispute, the decision of BOCHK shall be final.

BOCHK reserves the right to approve and reject the loan application at its absolute discretion. The actual loan amount, interest rate, handling fee and applicable terms and conditions are subject to BOCHK's final approval.

In case of any discrepancy between the Chinese and English versions, the Chinese version shall prevail.