With the Technology Voucher Program ending on December 31, 2024, many businesses in Hong Kong will still need funding to fuel their digital transformation. If your business was left out, don’t fret, as there are numerous other funding schemes and programs that may help connect you with the funds your business needs to upgrade or expand. In this article, we’ll cover four examples, and include links to their pages and application forms if you’d like to learn more.
Easy BUD fund
Scope & Eligibility
The Easy BUD funding scheme, launched by the Hong Kong government, is designed to support non-listed Hong Kong enterprises in their efforts to enhance branding, enable exhibition participation, upgrade operations, and promote sales in Mainland China and other regions with which Hong Kong has established free trade agreements.
Maximum Funding
The BUD fund offers financial assistance covering up to 50% of a project costs, with a maximum limit of HK$100,000 for each project, and a cumulative funding ceiling of HK$7 million per enterprise, letting businesses undertake multiple projects that can significantly boost their market presence in the mainland and beyond.
Reimbursement Terms
Once the application has been approved, each funded project must be completed within 12 months of the application’s approval date to receive full reimbursement.
How to Apply
The application process for the Easy BUD fund is streamlined to allow quicker access to funding, with a target approval time of just 30 business days. Interested businesses can easily apply by filling out an online form and submitting the necessary supporting documents.
Notes for Auditors
Auditors for companies funded by Easy BUD are required to gather sufficient evidence that the funds have been properly used, including clarifying any ambiguities in project agreements with the Program Secretariat. Auditors are expected to follow the example report attached to the Annex of the Notes for Auditors of Funded Enterprises.
Any weaknesses in internal controls that are identified must be reported to the company and the Program Secretariat along with recommendations for improvements. Auditors must also verify that funded companies are following guidelines provided by the Independent Commission Against Corruption (ICAC) when preparing tender documents.
SME Export Marketing Fund (EMF)
Scope & Eligibility
The EMF is designed to assist non-listed, well-established Hong Kong businesses looking to expand their markets beyond local boundaries. Eligible activities include participating in trade exhibitions, business missions, and an array of online marketing efforts targeting international markets, such as website and app creation, digital advertisements and social media promotion.
Maximum Funding
The SME Export Marketing Fund (EMF) offers funding of up to HK$100,000 or 50% of the total approved sum for each project, whichever amount is lower, adding up to a cumulative limit of HK$ 1 million per enterprise.
How to Apply
Applications for the EMF can be submitted year-round through online form, or filling in a physical form and submitting by post, via a drop-in box located next to Enquiry Counter on G/F of Trade and Industry Tower, or in person at the SME Export Marketing Fund Branch of the Trade and Industry Department. Applicants must clearly indicate whether they are applying for reimbursement or initial payment cum final payment on the form.
Reimbursement Terms
For reimbursements, supporting documents must be submitted within 60 calendar days after completing the eligible export promotion activity. For initial payments, documents must be submitted 45 to 120 days before the project begins, with final payments due within 60 calendar days after completion.
SME Financing Guarantee Scheme
Scope & Eligibility
The SME Financing Guarantee Scheme (SGS) is designed to boost the productivity and competitiveness of local non-listed SMEs by connecting them directly with participating lenders to secure funding necessary for their business’s growth and development.
There are several levels of guarantee products available to applicants dependent on their operation’s status and needs. These range from 90% guarantee products and 80% guarantee products down to 70%, 60%, and even 50% guarantee products. We will focus on the 90% and 80% guarantee products.
To qualify for the 80% guarantee product, applicants must be non-listed, registered Hong Kong companies that have been in operation for at least one year at the time of applying. Eligibility for the 90% guarantee product extends to non-listed companies that have been operating for less than one year.
Maximum Funding
The 80% guarantee product allows eligible SMEs to access loans of up to HK$ 18,000,000 with a guarantee period of up to 10 years, while the 90% guarantee product provides funding of up to HK$ 8,000,000 for a guarantee period of up to 8 years.
How to Apply
To apply for the SGS, interested parties must first contact participating lenders and submit a proposal to them directly for evaluation. Once the proposal is verified and due diligence is conducted, the participating lenders will submit a guarantee application to the Hong Kong Mortgage Corporation for review and approval.
Loan Repayment Terms
Both guarantee products must be paid back in installments not exceeding three months per installment, to be completely amortised by the end of their respective guarantee periods. If the borrower chooses to pay only interest for the specified initial period (6 months for the 80% guarantee product, 12 months for the 90% guarantee product), the guarantee period will not be extended.
Cyberport Digital Transformation Pilot Program
Scope & Eligibility
The Digital Transformation Support Pilot Programme (DTSPP) created by Cyberport aims to connect SMEs in the food and beverage and retail sectors with off-the-shelf solution providers to accelerate their digital transformation. Eligible applicants must be registered businesses in Hong Kong and have substantive business operations. Applicants also cannot be listed companies, statutory bodies, or NGOs receiving public funding.
Maximum Funding
The program offers funding support of up to HK$50,000 on a 1:1 matching basis for the cost of the selected digital solution. Applicants are required to pay at least half of the total cost upfront to the solution provider, with the remaining half provided by the program upon project completion.
How to Apply
To apply, interested parties must first register a funding applicant account, then select a solution from the provided list and contact the developers directly to understand the product. If they decide to proceed, they can submit their application form through their funding applicant account website for approval. Once their application has been approved, they can place an order with the solution provider.
Payment Terms
Once funding has been approved, applicants must pay their share to the solution providers to start the project. Upon project completion and approval of the final report, Cyberport will pay the remaining share to the solution provider.
Conclusion
While the alternative government funding options we’ve presented here are not directly comparable to the TVP, they are viable options to the right businesses that need them. Until the Hong Kong government announces a new scheme to replace the TVP, the funding options outlined could be what your business needs to upgrade and stay competitive.
