Hong Kong throws SMEs lifeline with raft of measures, HK$450 billion in loans

SME measures designed to improve access to financing, strengthen resilience, and accelerate transformation amid challenges linked to Middle East war

Hong Kong authorities have rolled out a fresh package of measures to support small and medium-sized enterprises (SMEs) reeling from the global fuel crisis and geopolitical tensions in the Middle East, including a 21 per cent increase in available bank lending to HK$450 billion (US$78.43 billion).

The Hong Kong Monetary Authority (HKMA), the city’s de facto central bank, on Wednesday said the measures for the SMEs were designed to improve access to financing, strengthen their business resilience, and accelerate their upgrade and transformation amid mounting operational challenges linked to the Middle East conflict.

The Task Force on SME Lending, comprising the HKMA and the Hong Kong Association of Banks, has expanded the size of dedicated funds set aside in its loan portfolio for SMEs from HK$370 billion in October 2024 to more than HK$450 billion, representing a 21 per cent increase.

SMEs affected by the oil price fluctuations, such as those in transport and logistics, manufacturing, and import and export sectors, would receive “accommodative” treatment in credit relief.

The measures include flexible repayment arrangements, loan tenor extensions, and more options for trade facility extensions to alleviate their cash flow pressure.

Participating banks and HKMC Insurance also promised to expedite approvals under the SME Financing Guarantee Scheme, with applicants to be notified of outcomes within 30 business days.