The Trade & Industry Department will accept applications for the $100 billion Special Loan Guarantee Scheme from participating lending institutions from December 15 for six months. The enhanced scheme can benefit 40,000 companies.

The Chief Executive pledged on December 8 to increase the amount of Government guarantee under the Special Loan Guarantee Scheme from $7 billion to $100 billion. The Legislative Council's Finance Committee approved the scheme today, making available loans of about $142 billion in the commercial lending market.

The Government will provide a 70% guarantee on the loans granted by lending institutions. The maximum amount each enterprise can obtain is $6 million, within which $3 million can be used as a revolving credit line.

The maximum guarantee period for each loan is three years, or up to June 30, 2012, whichever is earlier. A grace period of six months will be allowed, during which the borrower can repay the interest only. The loan should be repaid over a maximum of 30 months.

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