HSBC launches new SME loan offer

Successful SpGS loan applicants can avail themselves of rates as low as P-2 percent for up to US$1.548 million loan. The Hong Kong Special Administrative Government extended the Special SME Loan Guarantee Scheme and the HSBC will provide a new preferential offer to its commercial banking customers under the scheme.

The preferential loan rate is available for the rest of the year.

"We welcome the HKSAR's extension of the application period for the SpGS. In view of the uncertainties in the local economic recovery, as well as the year-end cycle, we believe small businesses are in need of funds for additional working capital and for investing into new business opportunities when they arise," said Lena Chan, Managing Director, Head of Business Banking.

She added: "We hope the new preferential offer can further assist small businesses manage their working capital and cash flow in a more flexible way."

In December 2008 HSBC established a new US$5 billion global loan fund for SMEs, US$2.58 billion of which has been committed to supporting SMEs in Hong Kong. To date, HSBC has approved approximately US$2.3 billion SME loans to support nearly 7,600 SMEs. More than 90 percent of the approved loans are for applicants of the Hong Kong Government's SME Loan Guarantee Scheme and the Special SME Loan Guarantee Scheme.