SME Financing Guarantee Scheme: What should a business check before applying?
The SME Financing Guarantee Scheme (SFGS) is operated by The Hong Kong Mortgage Corporation Insurance Limited (HKMCI). It helps local SMEs and non-listed enterprises obtain financing through participating lenders, with HKMCI providing credit guarantees on loans approved by those lenders for eligible enterprises. The 80% guarantee product's application period has been extended to 31 March 2028, while the 90% product's period runs to 31 March 2026. A government guarantee does not mean the loan is approved directly; assessment is made independently by the lender and HKMCI under their current procedures.
What is the SFGS and how does it work?
The Scheme was launched by The Hong Kong Mortgage Corporation Limited in 2011 and, since May 2018, has been run by its wholly-owned subsidiary, HKMCI. The logic is straightforward: an eligible enterprise applies for a loan through a participating lender; the lender performs customer due diligence, reviews the application, verifies eligibility and approves the loan, then submits the guarantee application and supporting documents to HKMCI, which reviews and approves the guarantee. The guarantee coverage lowers the risk carried by lenders, which makes it easier for enterprises to obtain financing in the commercial credit market.
As at the end of November 2025, the 80% and 90% guarantee products had benefited about 25,000 enterprises involving roughly 400,000 employees. On efficiency, HKMCI's recent figures show that over 80% of complete applications were approved within 10 working days, and over 60% within 3 working days; actual timing varies case by case.
80% / 90% products: current application periods and guarantee tenors
Under the Chief Executive's 2025 Policy Address, the application period for the 80% credit guarantee product was extended by two years to 31 March 2028, and the Scheme's total credit guarantee commitment was increased by HK$20 billion to HK$310 billion in total. The 90% product's application period runs to 31 March 2026. In addition, with effect from 18 November 2024, the maximum loan guarantee tenors of the 80% and 90% products were extended to 10 years and 8 years respectively, and a "partial principal repayment" option was introduced for newly drawn loans. The Special 100% Loan Guarantee's application period ended at the end of March 2024.
These arrangements are subject to HKMCI's latest announcements; before applying, always check the official page, the product factsheet and the participating-lender list.
| Product | Guarantee ratio | Current application period | Maximum guarantee tenor |
|---|---|---|---|
| 80% credit guarantee | 80% | To 31 March 2028 | 10 years |
| 90% credit guarantee | 90% | To 31 March 2026 | 8 years |
| Special 100% Loan Guarantee | 100% | Ended March 2024 | — |
Principal moratorium ("pay interest only"): current arrangements
Announced in the Chief Executive's 2024 Policy Address, eligible borrowing enterprises may apply for a maximum of 12 months' interest-only repayment on existing and newly drawn loans; the measures took effect on 18 November 2024. The 2025 Policy Address extended the arrangement: its application period now runs to 17 November 2026. The current structure has two tranches — eligible borrowers may apply for up to 12 months on or before 17 November 2025, and/or for up to a further 12 months between 18 November 2025 and 17 November 2026, for a combined maximum of 24 months. For loans drawn on or after 18 November 2025, eligible borrowers may apply for up to 12 months on or before 17 November 2026. Details are available from lenders from 1 November 2025.
The option's value is relief for short-term repayment burden: interest keeps accruing while principal is deferred, buying cash flow time. Do not mistake it for free money — the deferred principal does not disappear.
Step-by-step application process
1. Check official information. Review HKMCI's official page and product factsheet; confirm the application period for the product you want is still open, and obtain the participating-lender list.
2. Choose a participating lender. Apply directly through a lender on the list. Lenders provide assistance and do not charge application or handling fees.
3. Prepare documents. Company incorporation records, financial statements, revenue records and anything else the lender requires; completeness directly affects approval speed.
4. Lender due diligence and approval. The lender completes customer due diligence, reviews the loan application and verifies eligibility, then submits the guarantee application and supporting documents to HKMCI.
5. HKMCI guarantee approval. Most complete applications are processed within 10 working days (recent figures; varies case by case).
6. Sign and drawdown. Execute the loan documents on the lender's terms and receive funds per the arrangements.
No third party is needed at any step. HKMCI has publicly warned against anyone charging fees to arrange applications or secure approvals; applications submitted by third parties may incur unnecessary financial costs and expose personal data to misuse.
Who are the participating institutions, and who approves?
The structure has two layers. The first is the participating lenders — licensed banks and financial institutions on the Scheme — which handle loan approval and due diligence. The second is HKMCI, which approves the guarantee. Each layer runs its own procedures; if either layer does not pass, the loan does not proceed. This structure also explains why a "government guarantee" does not mean the government lends to you directly — the money always comes from the lender, and the government's role is the guarantee. Businesses should ask each lender directly about its stance on specific industries, loan sizes and tenors, since approval policies differ by institution.
Eligibility and cost: what framework should you look at?
The Scheme serves local SMEs and non-listed enterprises, but the precise eligibility definitions, loan caps and terms follow HKMCI's product factsheet and each lender's policy. In practice, lenders look at operating history, financial position, revenue, collateral arrangements and directors' credit standing. Interest is proposed by the lender for each case and varies by provider and case; the Scheme provides the guarantee, not a uniform rate. When preparing, focus on complete information and a clear repayment source — that is the sound way to improve your chances.
Official sources
Sources last checked:
Frequently asked questions
01What are the eligibility requirements for the SFGS?+
The Scheme serves local SMEs and non-listed enterprises; eligible enterprises must apply through participating lenders, and the lender verifies eligibility. Definitions, loan caps and terms follow HKMCI's product factsheet and lender policies — check with the lender directly before applying.
02What interest rate applies under the SFGS?+
The Scheme provides credit guarantees and does not set a uniform rate. Interest is proposed by the participating lender for each case and varies by provider and case. When comparing, ask the lender for the full cost over the term, including fees, rather than a single headline rate.
03Does a government guarantee mean approval is certain?+
No. The loan is approved by the participating lender and the guarantee is reviewed and approved by HKMCI, each assessing independently; a government guarantee does not mean the loan is granted directly or that any outcome is assured.
04Can the Special 100% Loan Guarantee still be applied for?+
No. HKMCI has announced that its application period ended at the end of March 2024. The 80% product (to 31 March 2028) remains open; the 90% product's application period runs to 31 March 2026 — verify HKMCI's latest announcements before applying.
05How do I apply for the principal moratorium, and what is the deadline?+
Apply through your lender. The arrangement's application period runs to 17 November 2026; eligible borrowers may take up to 12 months per tranche and up to 24 months in total, and loans drawn from 18 November 2025 may apply for up to 12 months on or before 17 November 2026. Confirm details with the lender.
06Should a business pay a third party to apply on its behalf?+
HKMCI reminds applicants that applications need not go through or involve any third party (other than participating lenders); third-party handling may cause unnecessary financial costs or expose personal data. Lenders provide assistance without charging application or handling fees.
07How long does approval take?+
HKMCI's recent figures show that over 80% of complete applications were approved within 10 working days and over 60% within 3 working days; actual timing varies case by case, with lender due diligence and document completeness as the key factors.
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