|
The Hong Kong government will launch a new loan guarantee scheme to help small and medium enterprises (SMEs) obtain loans from lending institutions, a spokesman for the Trade and Industry Department (TID) said Sunday.
According to the new scheme, effective on March 31, the maximum amount of guarantee an SME may receive is 4 million Hong Kong dollars (US$500,000).
"The improved measures aim to enhance SMEs' competitiveness by addressing their financing needs and improving their cash flow," the TID spokesman said.
Under the scheme, the maximum amount of business installations and equipment loan guarantee is increased to 2 million Hong Kong dollars (250,000 US dollars) per SME. The guarantee period is extended to five years the maximum from three years.
In addition, an SME may also obtain, under the government guarantee, additional operational expenses arising from an increase or enhancement in business installations and equipment.
Also, an SME may apply under the government guarantee for accounts receivable loans. The maximum amount of guarantee is 1 million Hong Kong dollars (130,000 US dollars) per SME.
(Xinhua News Agency March 31, 2003)
|
