HK$19 billion in loans approved since 2020 to help Hong Kong’s retail SMEs hit by pandemic
- Commerce minister says over 6,000 companies with 53,000 employees have benefited from loan guarantee scheme started in April 2020
Secretary for Commerce and Economic Development Algernon Yau Ying-wah revealed on Wednesday that since the start of the government’s “Special 100% Loan Guarantee Scheme”, more than 6,000 retail companies with nearly 53,000 employees had benefitted as of the end of March.
The scheme, which grants low-interest loans from banks guaranteed by the government, was introduced in April 2020.
Responding to lawmakers’ queries on what could be done to help retailers who were still struggling, Yau said the government’s scheme continued to help SMEs in the sector to explore new markets and raise their competitiveness in the face of changing spending patterns of locals and visitors.
Allen Shi Lop-tak, an honorary president of the Chinese Manufacturers’ Association, told the Post many SMEs were battling cash flow difficulties and that although measures such as the loan guarantee scheme could help, many companies still faced pressures in repaying their loans.
“The scheme has of course been useful to SMEs. It was introduced to help alleviate the burdens of businesses to get through the pandemic, but the economic environment today remains challenging,” he said.
