The government will extend the required payback period from up to eight years to up to 10 years for its two programmes offering interest-free loans to local small- and medium-sized enterprises (SMEs) and young local entrepreneurs.
The two programmes were rolled out in 2003 and 2013 respectively.
Secretary for Administration and Justice André Cheong Weng Chon and Economic and Technological Development Bureau (DSEDT) Director Tai Kin Ip made the announcement during a press conference at Government Headquarters on Friday. Cheong is also the spokesman for the government’s top advisory Executive Council.
The government will implement the new measures by amending the two administrative regulations on the two programmes respectively.
Cheong said on Friday that the government has drawn up amendments to the two administrative regulations. The amendments will take effect on the day after their promulgation in the Official Gazette (BO).
Government-drafted administrative regulations, informally known as by-laws, do not require the legislature’s approval.
The newly drawn-up amendments are expected to be gazetted today at the earliest.
In 2003, the government launched its programme offering local SMEs interest-free loans with the aim of helping them improve their business operations and capabilities or businesses affected by disasters or other unforeseen incidents. An applicant could obtain an interest-free loan of up to 200,000 patacas in 2003 when the scheme was launched. Since then, the maximum amount had been gradually raised. Currently, an applicant can obtain a loan of up to 600,000 patacas.
In 2013, the government launched its programme offering young local entrepreneurs interest-free loans of up to 300,000 patacas with the aim of encouraging young local people to launch a business. The programme benefits local residents aged between 21 and 44 who have operated their companies for less than two years.
The two programmes are handled by the Economic and Technological Development Bureau.
Beneficiaries of the two schemes can pay back their loans within up to eight years. Once the amendments announced on Friday take effect, they can pay back their loans within up to 10 years.
During Friday’s press conference, Cheong acknowledged that local businesses are currently still facing difficulties due to the city’s “unbalanced” economic recovery after the three-year COVID-19 pandemic.
With the aim of alleviating local SMEs and young entrepreneurs’ pressure in paying back their loans to the government, Cheong said, the government has decided to extend the two programmes’ required payback period from up to eight years to up to 10 years.
Secretary for Administration and Justice André Cheong Weng Chon (right) and Economic and Technological Development Bureau (DSEDT) Director Tai Kin Ip look on during Friday’s Executive Council press conference at Government Headquarters.
– Photo courtesy of TDM
