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Hong Kong Faces HK$28 Billion in Bad Loans from SME Scheme

4/14/2026

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Summary

Story summary

Hong Kong taxpayers face HK$28 billion in bad loans from the government-backed Special 100% Loan Guarantee under the SME Financing Guarantee Scheme.
The SME Financing Guarantee Scheme, launched in 2011, supports small enterprises during Covid.
Official data show 13,231 of 67,189 loan applications defaulted, a 19.3% rate, better than the 25% expected.
The government will repay defaulted amounts if they cannot be recovered.

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Story summary

Hong Kong taxpayers face HK$28 billion in bad loans from the government-backed Special 100% Loan Guarantee under the SME Financing Guarantee Scheme.
The SME Financing Guarantee Scheme, launched in 2011, supports small enterprises during Covid.
Official data show 13,231 of 67,189 loan applications defaulted, a 19.3% rate, better than the 25% expected.
The government will repay defaulted amounts if they cannot be recovered.