The HKD 33 billion ($4.22 billion) SME Power Up Fund, a strategic initiative to support the growth, cross-border development, and sustainable progression of Hong Kong’s small and medium-sized enterprises (SMEs), was unveiled on Tuesday by Hang Seng Bank, a Hong Kong-based financial institution.
In a statement, the bank said that it serves almost 25% of local SMEs and is the biggest local bank in Hong Kong.
It stated that more than 60% of new clients are start-up businesses, and more than half of its SME clients have long-term relationships that span more than ten years.
It is mentioned that by working directly with clients in a range of industries, Hang Seng has developed a thorough understanding of the challenges that SMEs face in the post-pandemic environment.
The challenges encompass a variety of issues such as insufficient cash flow, difficulty in regaining business momentum, rising operational costs, the need for environmentally sustainable practices, and plans to expand within the Greater Bay Area.
The opinion expressed in response to input received from various business sectors was that the creation of the SME Power Up Fund was a proactive measure in line with the government of Hong Kong’s pro-SMEs policies.
“As Hong Kong’s largest local bank, Hang Seng has a deep-rooted network and rich experience in nurturing SMEs,
“In the face of the intricate and dynamic business climate, it’s imperative for enterprises to not only adapt to new challenges but also enhance their sustainable practices,” said Regina Lee, Head of Commercial Banking of Hang Seng Bank.
She claims that the fund, which is designed to supplement the government’s assistance initiatives highlighted in the most recent Budget, is the bank’s concrete commitment to SMEs.
“Our goal is to empower SMEs, supporting economic growth across Hong Kong,” she added.
A variety of diversified loan offerings are included in the SME Power Up Fund, according to the statement. These include products like the 80 percent and 90 percent guarantee products under the SME Financing Guarantee Scheme, in addition to specialized loans like trade finance, revolving loans, Innobooster loans, and environmentally friendly options like the SME green loan and social loan.
The SME Business Loan is a crucial element that is designed to meet the various financial needs of SMEs.
