Enhanced measures for the special loan guarantee scheme and the SME export marketing fund will be implemented on June 15, the Trade & Industry Department announced today.

Under the enhanced guarantee scheme, the Government will increase its guarantee ratio for loans granted by the participating lending institutions from 70% to 80%. The maximum amount of loan that each enterprise may obtain will be doubled from $6 million to $12 million. Within this, the amount that can be used for revolving credit facilities  also doubles, from $3 million to $6 million.

The maximum guarantee period for each loan is extended from three years to five years, or up to December 31, 2014, whichever is earlier. A grace period of six months will continue to be allowed, during which the borrower may repay interest only.

All applications should be submitted through the participating lending institutions. So far, 23 of them have completed the legal procedures with the Government and are ready to accept applications.

The application period has been extended to the end of the year. As at yesterday, almost 9,900 applications had been approved, involving a total loan amount of $18.7 billion.

The Government has just injected $1 billion into the export marketing fund and the scope of reimbursable items has been expanded to include advertisements placed on eligible trade websites.

As of yesterday, more than 74,900 applications have been approved, involving a total grant of $1.2 billion.