BUD Fund Application Guide 2026: Caps, 1:3 Matching and Easy BUD

The BUD Fund pays up to HK$800,000 per project to non-listed Hong Kong enterprises for branding, upgrading and sales projects in 48 economies, including the Chinese Mainland. There is a HK$7,000,000 cumulative ceiling per enterprise. Since 14 March 2025 the government pays 1 part in 4 (a 1:3 matching ratio), and the initial payment is 20% of the grant. Easy BUD now funds up to HK$150,000 per application. The SME Export Marketing Fund was folded into BUD on 1 July 2026, so exhibitions and export marketing now go through Easy BUD.

Last reviewed: September 2026 · Sources: Trade and Industry Department (TID), Legislative Council Panel on Commerce and Industry, HKPC BUD Fund Secretariat, GovHK press releases

What changed in 2025 and 2026

Most online BUD guides still describe the scheme before 2025, when the government matched spending 1:1 and paid a 75% advance. Two rounds of change have made those guides wrong.

14 March 2025: the rationalisation. The LegCo paper of 17 March 2026 lists the measures in its Annex:

• The matching ratio moved from 1 (Government) : 1 (Enterprise) to 1:3 of total approved expenditure. Audit fees follow the same ratio.
• The initial payment fell from up to 75% to 20% of approved government funding.
• The ceiling for each general and E-commerce Easy project fell from HK$1,000,000 to HK$800,000. An applicant's total approved government funding may not exceed HK$800,000 at any one time.
• Each enterprise may submit one general and one E-commerce Easy application every three months.
• Outstanding obligations on completed projects must be cleared before a new application is processed.
• General and E-commerce Easy applications are processed in batches.

15 June and 1 July 2026: the enhancements. According to TID's BUD Fund page, the changes from 15 June 2026 are:

• Coverage grew from 40 to 48 economies. The new ones are Saudi Arabia, Bangladesh, Egypt, Hungary, Pakistan, Kazakhstan, Mongolia and Brazil.
• The Easy BUD ceiling rose by 50%, from HK$100,000 to HK$150,000.
• Support for AI elements became more targeted. AI items already funded by another government scheme will not be funded again.

On 1 July 2026 the SME Export Marketing Fund (EMF) was consolidated into BUD. This happened when EMF's special measures expired on 30 June 2026. Trade exhibitions in BUD markets, online advertising and company website work are now funded through Easy BUD, under guidelines that HKPC publishes.

The four routes into BUD

BUD is one fund with several doors, and the right door depends on the size of the project and what it is for.

All four routes count toward the same HK$7,000,000 lifetime ceiling and the cap of 70 approved projects per enterprise, which has applied since 7 November 2022. According to the government's answer to LCQ18 on 1 April 2026, no enterprise had used the full HK$7,000,000 by the end of February 2026, and only about 1% had used HK$4,000,000 or more.

The other economies programme used to be called the "FTA and IPPA Programme". TID's page now calls it the Other Economies Programme, because the eight economies added in 2026 were chosen for their trade ties and growth potential; most have not yet signed a trade or investment agreement with Hong Kong.

Who is eligible

BUD is open to non-listed enterprises doing business in Hong Kong under a business registration. HKPC, which runs the BUD Secretariat, also looks for evidence that the business has substantive operations here. The project must target one or more of the 48 covered economies and fall under branding, upgrading and restructuring, or promoting sales.

Industry and company size do not matter; a trading company and a manufacturer apply on the same terms. What matters is whether the project is a credible, costed plan for a named market.

What BUD pays for, and the caps within a project

HKPC's Scope of Funding summary caps each cost type as a share of total project expenditure. The caps that most often shape a budget are:

• Additional manpower: up to 50% of the project. It covers new hires for the project only, never existing staff.
• Machinery and equipment: up to 70%.
• Advertising: up to 50%. KOL fees count as advertising.
• Samples and prototypes: up to 30%.
• Setting up a new business entity: up to 20%. This covers licensing, renovation, up to three months' rent and professional fees.
• Travel and accommodation: up to 20%.
• Mobile apps: up to 50%.
• Website enhancement: up to HK$100,000 per application.
• Patent and trademark registration: up to HK$600,000 cumulatively per enterprise.
• External audit fee: up to HK$10,000 per audit, which counts toward your cumulative ceiling.

The following are not funded: existing staff salaries, general-use equipment such as laptops, gifts, entertainment and meals, association membership fees, contingency lines, and shop display fees and sales commissions.

Worked example: what 1:3 matching means in cash

Take a hypothetical Kowloon homeware brand that plans a HK$800,000 project to enter Malaysia: packaging redesign, a trade fair and a local distributor launch.

1. Government share: HK$800,000 × 1/4 = HK$200,000.
2. Enterprise share: HK$800,000 × 3/4 = HK$600,000.
3. Initial payment: 20% × HK$200,000 = HK$40,000, paid after the funding agreement is signed.
4. Balance: HK$200,000 − HK$40,000 = HK$160,000. This is paid only after the final report and the audited project account are accepted.

The company is therefore funding about HK$760,000 of spending (HK$800,000 − HK$40,000) from its own cash before the balance arrives. Budget for that gap first. The grant is a partial reimbursement, not working capital.

To reach the full HK$800,000 grant, total approved expenditure must be HK$800,000 × 4 = HK$3,200,000. While that grant is approved and still open, the HK$800,000 cap on funding outstanding at any one time means no other general or E-commerce Easy approval can sit alongside it.

An Easy BUD example. Suppose a florist wants a new e-shop and six months of online advertising. At 1:3 matching, the maximum grant of HK$150,000 corresponds to HK$600,000 of approved spend. A HK$120,000 project would attract HK$30,000. Easy BUD has no initial payment, so the whole grant arrives at the end.

Keep the project evidence in one place from day one. BUD pays on audited actuals. JetFlow's funding module holds each application's proposal, document checklist and supporting files together. The finance and expense modules keep the supplier invoices and receipts the auditor will ask for.

Step-by-step: from idea to final payment

1. Pick the route. Choose Easy BUD for a single designated measure of up to HK$150,000. Otherwise choose a general application or E-commerce Easy. Check that your target market is one of the 48 economies on the TID BUD page.
2. Clear old obligations. If a previous BUD project still owes a final report or an audit, finish it first, because the new application will not be processed until you do.
3. Write the plan. A Type (i) project engages a service provider to develop a holistic business plan. A Type (ii) project is one where you already have a plan and are implementing it. Either way, state the market, the measures, the deliverables and measurable targets.
4. Get quotations. Procurement must follow the rules in the Guide to Application, including the required number of quotations for each purchase. Keep the quotations you did not choose as well as the one you did.
5. Assemble documents. In practice these are:

• your business registration certificate and company documents;
• recent financial statements;
• evidence of Hong Kong operations, such as MPF records and business transactions;
• the plan and budget;
• the quotations.

Use HKPC's current checklist as the final word.

1. Submit online through the BUD Fund Secretariat portal. You can submit one general and one E-commerce Easy application every three months.
2. Vetting. General and E-commerce Easy applications are vetted in batches, with a 60-working-day pledge. Easy BUD applications have a 30-working-day pledge. The Secretariat will ask questions, so answer promptly.
3. Sign and start. Sign the funding agreement and take the 20% initial payment if you want it. Do not commit spending before approval unless the guide expressly allows it.
4. Implement and record. Keep invoices, payment proofs and deliverables for each approved item. Changes to the budget or timeline need prior approval.
5. Report and claim. Submit the reports the agreement requires, with an audited project account. The balance is paid after these are accepted.

Common mistakes that cost SMEs the grant

• Budgeting as if the ratio were still 1:1. At 1:3 your cash commitment is three times the grant. A plan built on the old ratio collapses at the first invoice.
• Charging existing staff salaries. Only new hires for the project qualify, and a general-use laptop or phone will not be funded either.
• Breaking the category caps. Travel above 20% of the project or advertising above 50% is cut at vetting, and the plan may no longer hold together without it.
• Weak procurement evidence. Missing quotations, or quotations that look coordinated, lead to cost disallowances at the final claim.
• Leaving an old project open. An unfiled final report on project A blocks the processing of project B.
• Spending on unapproved changes. Re-allocating between items or extending the timeline without prior approval can make the cost ineligible.

Selectivity is real. LCQ18 reported approval rates at the end of 2025 of about 60% for Easy BUD and 41% for E-commerce Easy. The average approved grant in 2025 was about HK$719,000 for general applications, HK$68,000 for Easy BUD and HK$566,000 for E-commerce Easy.

Frequently asked questions

How much can I get from the BUD Fund in 2026?

Up to HK$800,000 per general or E-commerce Easy project, and up to HK$150,000 per Easy BUD application. The lifetime ceiling is HK$7,000,000 per enterprise across all routes and no more than 70 approved projects. Because the government pays one quarter of approved spending, a full HK$800,000 grant needs a HK$3,200,000 project.

Is the SME Export Marketing Fund still open?

No. EMF was consolidated into BUD on 1 July 2026, when its special measures ended on 30 June 2026. Exhibitions and export marketing activities in BUD's 48 economies are now funded through Easy BUD, under HKPC's guidelines.

What is the BUD Fund matching ratio?

Since 14 March 2025 it has been 1 (Government) : 3 (Enterprise) of total approved expenditure, including audit fees. The previous 1:1 ratio no longer applies to new applications.

How long does a BUD application take?

The performance pledge is 60 working days for general and E-commerce Easy applications, which are vetted in batches. It is 30 working days for Easy BUD. The clock runs from a complete application, so missing documents delay the start.

Can I apply for BUD if I already have an approved project?

Yes, within limits. You can submit one general and one E-commerce Easy application every three months. Your approved government funding outstanding at any one time cannot exceed HK$800,000, and earlier completed projects must have their obligations cleared first.

Which countries does the BUD Fund cover?

From 15 June 2026, 48 economies are covered: the Chinese Mainland, the ten ASEAN states, the free-trade and investment-agreement partners, and eight new markets. The new markets are Saudi Arabia, Bangladesh, Egypt, Hungary, Pakistan, Kazakhstan, Mongolia and Brazil.

Key takeaways

• The government now pays one quarter of approved spending (1:3), with a 20% initial payment. Plan your cash accordingly.
• The ceilings are HK$800,000 per general or E-commerce Easy project, HK$150,000 per Easy BUD application and HK$7,000,000 per enterprise.
• EMF no longer exists as a separate fund. Exhibitions and export marketing go through Easy BUD from 1 July 2026.
• The scheme covers 48 economies from 15 June 2026, including Saudi Arabia, Brazil and Kazakhstan.
• Most rejections and disallowances come from ineligible costs, category caps, procurement evidence and unfinished old projects. All of these are avoidable.

BUD rewards the companies whose books can prove every dollar. If you are weighing BUD against loan guarantees and other schemes, start with our Hong Kong SME government funding guide. Make the project account part of your month-end close, and put report deadlines in your compliance calendar. When you are ready to run the project, the books and the application in one place, see how JetFlow handles government-funding projects.

This article is general information, not professional advice. Scheme rules change, so confirm current terms with the BUD Fund Secretariat before you apply.