Hong Kong's SME Financing Guarantee Scheme Gets Major Boost: What Businesses Need to Know

Hong Kong is stepping up its support for small and medium enterprises through a substantial overhaul of the SME Financing Guarantee Scheme. The Hong Kong Monetary Authority has rolled out expanded financial assistance measures, signaling the government’s determination to cushion businesses against persistent economic headwinds.

The Numbers Behind the Support

The financial commitment is substantial. The total loan guarantee under the SME Financing Guarantee Scheme will jump by HK$20 billion, pushing the overall guarantee pool to HK$310 billion. This injection of capital represents a meaningful escalation in the government’s backing for enterprises struggling with credit access and cash flow pressures.

The expansion addresses a critical gap: many SMEs find themselves squeezed between operational costs and lending constraints. By deepening the guarantee commitment, Hong Kong is effectively expanding the pool of enterprises that can access favorable financing terms.

Timeline and Eligibility Shifts

The application window for the 80% Guarantee Product has been stretched significantly. Enterprises now have until the end of March 2028 to apply—a two-year extension that provides a longer runway for businesses to structure their financing needs.

Perhaps more immediately impactful is the moratorium extension. The principal moratorium—which allows companies to defer loan repayments—now stretches until November 17, 2026. This is a critical lifeline for cash-constrained operations. Eligible businesses can now access up to 12 months of moratorium either before or after November 17, 2025, totaling as much as 24 months of payment relief over the two-year window. For loans disbursed from November 18, 2025 onward, the moratorium window extends to November 17, 2026.

What This Means for Enterprise Operations

The extended moratorium period provides breathing room for SMEs to redirect capital toward growth, staff retention, and operational improvements rather than servicing debt. This is particularly valuable in volatile economic environments where revenue visibility remains uncertain.

Rolling Out the Changes

HKMC Insurance Limited, operating under the Hong Kong Mortgage Corporation umbrella, will work with participating lenders to bring these measures to life. Starting November 1, 2025, businesses should engage with their financial institutions to map out how these enhancements apply to their specific loan arrangements.

The timing reflects Hong Kong’s recognition that SME stability is foundational to regional economic resilience. These expanded guarantees and extended moratoriums represent a deliberate policy choice to ensure enterprises have the financial flexibility to weather uncertainty and invest in their futures.