The government announced it will commit HK$7.5 billion with an expected maximum expenditure of HK$1.9 billion to four funding schemes that it will launch in January 2002. The schemes are aimed at helping SMEs over the economic downturn and upgrade themselves in the changing economic environment.

The four schemes -- SME Business Installations and Equipment Loan Guarantee Scheme (BIG); SME Training Fund (STF); SME Export Marketing Fund (EMF); and SME Development Fund (SDF) -- are open to any manufacturing businesses which employ fewer than 100 persons, or any non-manufacturing businesses which employ fewer than 50 persons in Hong Kong.

BIG helps SMEs secure loans from banks and financial institutions for procuring business installations and equipment by providing government guarantee of up to 50 per cent of the loan amount, or HK$1 million per SME, whichever is less. The maximum period of guarantee is three years.

STF aims to provide financial assistance, on a dollar-to-dollar matching basis, to SME employers and employees to attend training courses relevant to their business operations. The maximum cumulative amount of financial support that an SME can obtain from the scheme is HK$10,000 for employee, and HK$5,000 for employers.

EMF supports the participation of SMEs in export promotion activities, including trade fairs held overseas or locally, and overseas study missions. The maximum amount of financial support that an SME can obtain is 50 per cent of the expenditures on fundable items, or HK$10,000, whichever is less. Each successful applicant will only receive financial assistance once under the scheme.