What Hong Kong's SME Support Package Really Means for Business Owners

Hong Kong is doubling down on small business support. The Hong Kong Monetary Authority (HKMA) has rolled out an enhanced SME Financing Guarantee Scheme (SFGS) designed to ease cash flow pressures on enterprises navigating a tougher economic environment. Here’s what changed and why it matters.

The Numbers Behind the Relief

The upgrade brings fresh ammunition to the financing guarantee arsenal. Total loan guarantees available under the scheme jump by HK$20 billion, now capped at HK$310 billion across the program. More importantly, the 80% Guarantee Product—the workhorse of the scheme—just got a lifeline extension, now open for applications through March 2028. That’s a two-year runway that gives businesses significantly more time to access favorable borrowing terms.

Breathing Room on Repayments

Perhaps the most tangible relief comes on the repayment front. The principal moratorium—essentially a pause on loan principal payments—originally scheduled to end in mid-November 2025, is being pushed to November 2026. This extended window gives eligible enterprises a critical advantage: they can now secure up to 12 months of payment deferral before or after November 17, 2025, creating a potential 24-month relief window for those who layer their applications strategically.

For loans disbursed after mid-November 2025, businesses have until November 2026 to apply for their own 12-month moratorium, providing additional flexibility for newer borrowing arrangements.

Why This Timing Matters

These adjustments arrive as global economic headwinds intensify. By extending the SME Financing Guarantee Scheme framework, Hong Kong’s government is signaling commitment to keeping its small business sector—the backbone of local economic activity—afloat and operational during uncertain times.

Next Steps for Borrowers

The wheels start turning November 1, 2025. That’s when HKMC Insurance Limited, the Hong Kong Mortgage Corporation’s subsidiary managing implementation, coordinates with lenders on rollout. Businesses should reach out to their participating financial institutions to map out specific applications and timeline strategies that best leverage the extended scheme benefits.