Colin Pou, Executive Director and CEO of Hong Kong Mortgage Corporation Limited (HKMCI), outlined recent measures to strengthen support for small and medium-sized enterprises (SMEs) under the SME Financing Guarantee Scheme (SFGS). Hong Kong hosts nearly 360,000 SMEs, which remain a vital pillar of the city's economy.

According to Pou, the application period for the 80% Guarantee Product has been extended for two years, and the principal moratorium arrangement prolonged for an additional year. These updates were launched in November 2025, following preparatory coordination between HKMCI and participating lending institutions. Borrowing enterprises may apply according to operational needs, with more than 80% of applications approved within ten working days, and over 60% within three working days, providing rapid liquidity support.

Pou reported that the 80% and 90% Guarantee Products now have application deadlines of 31 March 2028 and 31 March 2026, respectively. As of November 2025, these products have benefited approximately 25,000 enterprises and 400,000 employees, spanning retail, catering, services, and technology sectors. The scheme has enabled both established brands and start-ups to navigate economic pressures effectively.

He also highlighted the Special 100% Loan Guarantee for SMEs and the 100% Personal Loan Guarantee Scheme (PLGS) for individuals who lost main sources of income during the epidemic. Though these schemes ended in 2024 and 2023, they collectively assisted around 40,000 enterprises (over 400,000 employees) and 59,000 individuals.

On debt recovery, Pou explained that HKMCI and lending institutions continue to manage defaults, negotiating repayment plans with borrowers and guarantors where possible, and pursuing legal action if necessary. As of October 2025, for the Special 100% Loan Guarantee, over 30% of defaulting cases were in or faced bankruptcy proceedings, nearly 20% were pursued via court orders, and the remainder were handled by in-house collection units or agents. For the PLGS, about 20% of defaulting borrowers faced bankruptcy, with the rest similarly managed.

Regarding defaults, Pou noted that the government had assumed an overall default rate of 25% for both 100% guaranteed schemes. By the end of November 2025, the cumulative default rates were 18.5% for the Special 100% Loan Guarantee and 21.2% for the PLGS, with approximately 37% and 41% of loans recovered, respectively. He emphasized that HKMCI and banks maintain strict due diligence to prevent illegal practices, including shell companies, falsified documents, or bribery, with 3,100 applications totaling HK$5.31 billion rejected for suspected misconduct by October 2025.

Pou underlined that these schemes were designed as special relief measures, not conventional commercial loans. Rapid approval was crucial to provide timely support, with borrower credit assessment being secondary to delivering aid.

Through the SFGS and related schemes, Pou concluded, HKMC and lending institutions aim to ensure proper use of public resources, while helping SMEs and affected individuals maintain operations and financial stability.