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미래전략 연구소2020-04-27T17:52:49+09:00

Hong Kong Key Features of Special 100% Loan Guarantee

Date
2020-05-22 12:03
What is the Eligibility condition?

• Eligible enterprises must have business operation in Hong Kong and be registered in Hong Kong under the Business Registration Ordinance (Chapter 310) and have good loan repayment records.
• Must not be a listed company or carry on the business of lender or affiliated of the lender

What kind of Business Operation History is required?

• Eligible enterprises must have business operation for at least three months in Hong Kong as at December 2019. In addition, eligible enterprises are required to provide proofs that they have suffered at least a 30% decline in sales turnover in any month since February 2020 compared with the monthly average of any quarter (i.e. Jan to Mar, Apr to Jun, Jul to Sep or Oct to Dec ) in 2019.

What kind of Documents Required?

• Business Registration Certificate
• Certificate of Incorporation (or Form 1(a) or Form 1(c) of the Business Registration Office for sole proprietorship or partnership) dated before 1 October 2019
• Copy of identity card or other identity document of each director, shareholder, sole proprietor or partner
• Audited financial statements, management accounts, bank statement or sale record, Accounting Ledger to prove that the enterprise has suffered at least a 30% decline in sales turnover in any month since February 2020 compared with the monthly average of any quarter in 2019
• Stamped tenancy agreement or rental receipt, and supported by the latest available payment records such as bank pay-in slips
• Latest Employer’s MPF mandatory contribution statements

Does it require Credit History?

Yes, The Borrower must not have any outstanding default of more than 60 days.

What is the Annual Guarantee Fee Rates ?

Not applicable

How long is the Maximum Guarantee Period?

100% for Three years

How much is the Maximum Facility Amount Per Borrower (“MFA”)?

• Borrower’s total amount of (a) wages and (b) rents for six months, or HK$4,000,000, whichever is the lower.
• For Borrowers without (a) and (b) above, the calculation can be replaced by half of the maximum monthly net income in 2019 and multiplied by six.

It is regardless of the existing credit facilities of that enterprise, its Subsidiaries and/or its Related Entities guaranteed under the 80% or 90% Guarantee Products, if any.

Is there any limitation to use the Credit Facilities?

The credit facility must be used to pay wages and rents. In addition, it can be used to meet imminent needs in working capital.

The credit facility must not be used for repaying, restructuring or repackaging all or any part of any loan, credit facility or payment obligation of the borrower, its Subsidaries and its Related Entities, including any credit facilities granted to the borrower by the same Lender guaranteed under the Scheme.

What is the Maximum Overall loan Interest Rate ?

• 2.75% per annum, which is 2.5% less than the prime lending rate of 5.25%
• The prime lending rate will be quoted by HKMC from time to time.

Does it requrie Personal Guarantor?

Yes

When is the Application Period?

From 20 April 2020 to 19 April 2021

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