(To watch the video with sign language interpretation, click here.)
Five applications have been approved under the 90% Guarantee Product of the SME Financing Guarantee Scheme since it was launched on December 16.
Secretary for Commerce & Economic Development Edward Yau today told reporters that the scheme was approved by the Legislative Council on December 6, adding that the Mortgage Corporation and participating banks rolled it out last Monday.
“This 90% Guarantee Product under the SME Financing Guarantee Scheme is a major response to demands and requests from small and medium enterprises (SMEs) whom we consulted in the last year or so.
“Among all the difficulties faced by SMEs, cash flow has been a major issue. Because of the reduction of revenue, in order to keep their business going, cash is in fact the most important.
“That is why this 90% Guarantee Product would provide a level of comfort for banks to provide this relief.”
Mr Yau noted more than 30 applications have been received, adding that timeliness is an important element of the scheme as SMEs are suffering from cash flow problems every week.
“Within a week, we are seeing applications, we are seeing applications being approved and money dished out.
“I think this is the kind of promptness that we intended to do, but of course it must be done together with the banking sector and Mortgage Corporation.”