Apart from getting funds from banks or investors, start-ups and small businesses can check out the funding schemes or grants set up by the Hong Kong government. Both funding schemes and grants are sums of money given to a business in order to help them further their business, promote innovation and/or support different industries. Companies are usually not obliged to at a later stage pay back the money so long as they meet the requirements and conditions set out under the grant.
Different types of Funding Scheme
The Hong Kong government has initiated a number of funding schemes for enterprises and organisations across different industries. Here are some of the most sought after schemes:
- SME Financing Guarantee Scheme is a fund which helps SME and non-listed enterprises obtain financing from participating lenders for meeting business needs.
- The SME Export Marketing Fund (EMF) is a fund which focuses primarily on marketing or promotion activities. It strives to provide financial assistance to SMEs for participation in export promotion activities, hoping to encourage them to expand their markets outside Hong Kong.
- The Innovation and Technology Support Programme (ITSP) supports research and development (R&D) projects undertaken by designated local public research institutes and R&D Centres.
- The Patent Application Grant assists local companies and individuals to apply for patents of their own inventions to capitalise their intellectual work.
The Hong Kong government has also set up the SME Loan Guarantee Scheme (SGS). Instead of providing fund/loan directly to a SME, the Government will act as a guarantor to provide loan guarantee to SMEs to help them secure loans from participating lending institutions for acquiring business installations and equipment or meeting working capital needs of general business uses.
For more information on other funding schemes set up by the Hong Kong government, Please click here.
Timely and truthful declaration
An enterprise applying for funding support under the funding schemes must fulfil the corresponding eligibility requirements.
An enterprise must complete an application timely and truthfully and provide all supporting documents. Any misrepresentation or omission of information may lead to rejection of the application. It is also a criminal offence in law to obtain or assist someone to obtain advantage by deception, any person who does so may be liable to legal proceedings.
Key takeaways:
- The Hong Kong government has from time to time set up different funding schemes and grants to help small businesses grow.
- Eligible companies should apply under these schemes according to their needs and one of the biggest advantages of doing so is that there is no general obligation to pay back the government after obtaining the fund.
- An applicant enterprise must complete an application for funding timely and truthfully.
Bibliography:
- Hong Kong Government, “Government Funding Schemes at a Glance” https://www.success.tid.gov.hk/success_enews/govfundscheme/eng.pdf