Hong Kong SME Government Funding Guide 2026: What's Open and Closed

In September 2026 three government schemes do most of the work for Hong Kong SMEs: the BUD Fund (up to HK$800,000 per project at 1:3 matching, or HK$150,000 via Easy BUD), the SME Financing Guarantee Scheme 80% product (loans up to HK$18,000,000, open until 31 March 2028) and, for manufacturers, the New Industrialisation Funding Scheme (up to HK$15,000,000). Closed: the Technology Voucher Programme, the SFGS 90% product, the standalone SME Export Marketing Fund and the last Digital Transformation Support round.

Last reviewed: September 2026 · Sources: Trade and Industry Department (TID), HKMC Insurance, Hong Kong Monetary Authority, Innovation and Technology Commission, Innovation, Technology and Industry Bureau, Cyberport, Legislative Council

The 2026 funding map at a glance

The table below separates money you keep (grants) from money you repay (guaranteed loans), because they solve different problems.

The government's SME Link portal is the one-stop index. The rules below come from each scheme's own administrator.

BUD Fund: the main grant for market development

BUD supports non-listed Hong Kong enterprises to develop brands, upgrade and restructure, and promote sales in the Chinese Mainland and 47 other economies. Eight economies were added on 15 June 2026: Saudi Arabia, Bangladesh, Egypt, Hungary, Pakistan, Kazakhstan, Mongolia and Brazil.

Since 14 March 2025 the government has matched spending 1:3, so it pays one quarter of approved expenditure. It advances 20% of the grant as an initial payment. Your total approved funding outstanding at any one time is capped at HK$800,000.

The TID BUD Fund page confirms two further changes. The Easy BUD ceiling rose from HK$100,000 to HK$150,000 on 15 June 2026. The SME Export Marketing Fund was consolidated into BUD on 1 July 2026, so trade fairs, online ads and websites for BUD markets now go through Easy BUD.

For the full mechanics, including caps by cost type, documents and a step-by-step, see our BUD Fund application guide.

SME Financing Guarantee Scheme: borrowing, not a grant

The SFGS is run by HKMC Insurance Limited. It does not give you money. Instead it guarantees part of a bank loan, which makes a lender more willing to say yes and can improve the terms. You apply through a participating bank, not to the government.

According to the HKMA's September 2025 announcement, the 80% Guarantee Product is open until the end of March 2028. Its key terms, from the SFGS factsheet:

• Maximum facility: HK$18,000,000 per borrower at any time.
• Facility type: revolving or term facilities.
• Guarantee fee: up to 0.45% a year of the loan amount or facility limit.
• Operating history: at least one year of business operations in Hong Kong.
• Listing status: non-listed businesses only.
• Guarantee period: qualifying guarantees can run for up to 10 years.

The same announcement extended the principal moratorium arrangement. Borrowers can apply to their lender on or before 17 November 2026 for up to 12 months of principal-only relief.

The 90% Guarantee Product closed on 31 March 2026. It had a HK$8,000,000 ceiling and suited younger, smaller businesses. The pandemic-era Special 100% Loan Guarantee closed on 31 March 2024. Any adviser still offering either is out of date.

New Industrialisation Funding Scheme: for manufacturers only

NIFS used to be called the Re-industrialisation Funding Scheme and was renamed on 25 October 2023. It funds new smart production lines in Hong Kong. The ITC's NIFS page sets out the terms:

• Matching: 1 (government) : 2 (company).
• Grant: up to one-third of the approved project cost or HK$15,000,000 per project, whichever is lower.
• Limit per company: up to three projects at a time, for a maximum of HK$45,000,000.
• Eligibility: companies incorporated in Hong Kong under the Companies Ordinance.
• Applications: accepted all year round.

The line must meet "smart manufacturing" criteria, such as IoT, real-time data, automation and robotics, or AI in the production process. It cannot be moved out of Hong Kong or transferred for three to five years after completion; the period depends on the size of the grant. For a trading company or a services firm, NIFS is irrelevant.

The schemes that have closed, and what replaced them

Technology Voucher Programme. TVP funded up to 75% of a project's cost, with a HK$600,000 cumulative cap. It stopped accepting new applications after 31 December 2024; the government announcement names no single successor. The government's position is that more targeted, sector-specific schemes now fill the gap. For an SME's technology spend in an overseas market, BUD's upgrading stream and its new AI support are the nearest live route.

Digital Transformation Support Pilot Programme. DTSPP was run by Cyberport for the Digital Policy Office. It paid 1:1 matching up to HK$50,000 for off-the-shelf digital payment, online promotion and customer-management solutions. It covered F&B, retail, tourism and personal-services SMEs, and approved 8,799 SMEs from its HK$500 million budget.

The DTSPP portal shows it as closed. In its answer to a LegCo question on 25 February 2026, the government said an enhanced round adding AI and cybersecurity solutions needs about HK$300 million. It is targeted for the second half of 2026, after consultation with LegCo. Until the portal reopens, there is nothing to apply for.

SME Export Marketing Fund. EMF no longer exists as a separate fund. Its special measures expired on 30 June 2026, and export marketing is now funded through Easy BUD.

Keep a live register of the schemes you are using. JetFlow's funding module holds each application's proposal, document checklist and supporting files in one place. It sits alongside the ledger that the eventual audit will test.

Worked example: combining a grant and a guaranteed loan

Take a hypothetical Kwun Tong kitchenware trader planning a HK$2,000,000 project to launch in Vietnam. The project covers a distributor launch, trade fairs, packaging and a localised website.

1. BUD grant (1:3): HK$2,000,000 × 1/4 = HK$500,000. That is under the HK$800,000 per-project cap.
2. Company's share: HK$2,000,000 − HK$500,000 = HK$1,500,000.
3. Initial payment: 20% × HK$500,000 = HK$100,000. The remaining HK$400,000 arrives after the final report and audit are accepted.
4. Peak cash need: HK$2,000,000 − HK$100,000 = HK$1,900,000 paid out before the balance comes back.
5. Bridging with an SFGS 80% loan of HK$1,500,000: the guarantee fee is at most 0.45% × HK$1,500,000 = HK$6,750 a year. Interest is extra and set by the bank.

The trader's net cost is the HK$1,500,000 share, plus interest and the guarantee fee. The loan does not reduce that cost; it spreads the timing. Confirm with the BUD Secretariat and your bank that your specific funding structure is acceptable before you commit.

How to choose

1. Define the spend. Market development outside Hong Kong points to BUD. A smart factory line in Hong Kong points to NIFS. General cash-flow or capex with no grant-eligible project points to an SFGS loan.
2. Check the cash. BUD and NIFS both reimburse most of the grant after the event. If you cannot fund three-quarters (BUD) or two-thirds (NIFS) of the project, plus the timing gap, arrange borrowing first.
3. Check status on the day. Schemes open and close by announcement, so read the administrator's page, not a blog from last year.
4. Avoid double funding. BUD states that AI items already funded by another government scheme will not be funded again. Assume the same principle applies across schemes.
5. Plan the evidence. Every grant ends in a report and an audited account, so set up project-level record-keeping before the first invoice.

Common mistakes

• Applying to a closed scheme. TVP, the SFGS 90% product and EMF are the three most common examples in 2026.
• Treating a guarantee as a grant. SFGS reduces the bank's risk. You still repay every dollar, with interest and a guarantee fee.
• Using pre-2025 BUD maths. The 1:1 ratio and the 75% advance are gone. At 1:3 your share is three times the grant.
• Waiting for DTSPP. An announced round is not an open round. If a digital project cannot wait, fund it yourself or look at Easy BUD, for example for an online sales platform.
• Ignoring lock-ins. NIFS lines cannot be moved offshore for three to five years, and BUD approvals block new ones while they are outstanding.

Frequently asked questions

What government funding is available for SMEs in Hong Kong in 2026?

The main live schemes are the BUD Fund (general, E-commerce Easy and Easy BUD), the SFGS 80% Guarantee Product and, for manufacturers, the New Industrialisation Funding Scheme. Organisations such as chambers and trade associations can also use the Trade and Industrial Organisation Support Fund. Individual SMEs benefit from its projects indirectly rather than applying themselves.

Is the Technology Voucher Programme still open?

No. TVP stopped accepting new applications after 31 December 2024. Projects approved before then continue under their original terms, but there is no new intake and no like-for-like replacement.

Is the SME Financing Guarantee Scheme still available?

Yes, the 80% Guarantee Product is open until 31 March 2028, with a HK$18,000,000 maximum facility. The 90% product closed on 31 March 2026 and the Special 100% Loan Guarantee closed on 31 March 2024.

Will the Digital Transformation Support Pilot Programme reopen?

The government has said an enhanced round covering AI and cybersecurity, needing about HK$300 million, is targeted for the second half of 2026. As of late September 2026 the DTSPP portal still shows the programme as closed. Watch the portal rather than planning around a date.

Can I use the BUD Fund and an SFGS loan together?

They do different jobs: BUD reimburses part of a project, and SFGS helps you borrow. Many businesses finance their share of a grant-funded project with bank borrowing. Confirm the structure with both the Secretariat and your lender first.

Key takeaways

• Three main schemes are live: BUD (up to HK$800,000 per project, 1:3), SFGS 80% (loans up to HK$18,000,000, until 31 March 2028) and NIFS (up to HK$15,000,000, 1:2).
• Closed: TVP (after 31 December 2024), SFGS 90% (31 March 2026), Special 100% (31 March 2024), EMF as a standalone fund (merged 1 July 2026) and DTSPP's last round.
• Grants reimburse, loans lend. Plan the cash gap before you apply.
• Status changes by announcement. Verify on the administrator's page on the day you apply.
• Every grant ends in an audit. Record-keeping is part of the application, not an afterthought.

Grants reward businesses with clean, project-level books. Tie the funded project into your month-end close, put report dates in your compliance calendar, and read our guide to accounting software for Hong Kong SMEs if your current system cannot separate project costs. To keep scheme applications, documents and the ledger together, see how JetFlow handles government-funding projects.

This article is general information, not financial or legal advice. Scheme terms change, so confirm current rules with each administrator before you apply.