[Updated] A step by step guide to apply for the Special 100%Loan Guarantee (SFGS100) | Article – HSBC VisionGo

The SFGS 100 has started receiving applications from 20 April 2020.This article explains in detail the five phases of the loan application process.

Finance  ·    ·  2 mins read

A step by step guide to apply for the Special 100% Loan Guarantee (SFGS 100) 

The COVID-19 pandemic has created a great deal of uncertainty. To assist small and medium-sized enterprises (SMEs) that are suffering due to the current economic downturn, the Hong Kong Government has introduced the Special 100% Loan Guarantee (SFGS 100) under the SME Financing Guarantee Scheme.

The Special 100% Loan Guarantee (SFGS 100) has started receiving applications from 20 April 2020. Interested businesses can contact participating banks and consolidate supporting documents to apply for the scheme. This article explains in detail the five phases of the loan application process.

1. Evaluate your eligibility 

Applicants have to fulfill all three eligibility criteria:

  • The business has operations and is registered in Hong Kong

  • The business should have been operating for at least three months in Hong Kong as at December 2019. 

  • The business has suffered at least a 30% decline in sales turnover in any month since February 2020 compared with the monthly average of any quarter in 2019

2. Fill in the application forms

Once the eligibility criteria for SFGS100 are fulfilled, applicants may get started on the SFGS application process by downloading the application forms here and filling in the required information.

The completed application forms should be printed out, signed, and have a company chop.


3. Prepare supporting documents

Additional application processing time may be needed if supporting documents are missing.

Supporting documents include:

  • A copy of a valid Business Registration Certificate

  • A copy of Hong Kong identity card(s) or passport(s) of owner(s) / director(s)

  • Proof of wages:

    As the maximum loan amount per company depends on its employee wages and rents, applicants need to provide statement of the employers’ contribution to the Mandatory Provident Fund (MPF) or Occupational Retirement Schemes (ORSO) issued within three months

  • Rental proof (either of the following)

    For rented premises

    Two months’ bank statements with transaction proof or bank pay-in slips issued with the last six months, and prevailing stamped tenancy agreement or rental receipt

    For self-owned premises

    Demand note for rates and Government rent issued within the last 6 months

  • Bank statement(s) showing a 30% drop in sales turnover

    Applicants need to prove their business suffered at least a 30% decline in sales turnover in any month since February 2020 compared with the monthly average of any quarter in 2019. Applicants can use bank statements from up to three banks to show their sales turnover.

  •  Personal Guarantees

    Limited companies and partnership need to provide personal guarantees by individual shareholder(s) or partners who directly or indirectly, hold more than 50% of the equity interest of the enterprise.
     
    Limited Companies need to provide completed “Guarantee by Individual(s)" booklet and Consent for Use and Disclosure of Personal Data

    Provide shareholder change documents (“bought and sold note” and “instrument of transfer”) if effected since last NAR1 filing

4. Submit the application forms and supporting documents 

Each bank will have a different application submission channel. For HSBC, applicants should email the HSBC “100% Guarantee Loan Application form” to sfgs100@hsbc.com.hk with subject “100% Guarantee Loan_[your Company name].

Then, applicants should mail all the hard copies of electronic application forms and supporting documents to HSBC “Business Loans Team” at 8/F, Tower 3, HSBC Centre, 1 Sham Mong Road, Kowloon, Hong Kong or  submit the application to the Document Collection Points

5. Wait for the approval notification 

Applicants will receive a notification from the bank once the application is approved. Applicants should ensure bank recorded correspondence address is up-to-dateas application result will be notified by post.

For further enquiry, please email:telemarketingcmb@hsbc.com.hk.

Reminder: "To borrow or not to borrow? Borrow only if you can repay!" 
HSBC reserves the final decision on application approval. Please refer the terms and conditions of the application form.


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