Introduction to the BUD Fund
What is the BUD Fund?
The BUD (Branding, Upgrading, and Domestic Sales) Fund scheme is to support individual Hong Kong enterprises in undertaking projects to develop brands, upgrade and restructure their business operations and promote sales in the Mainland and economies with which Hong Kong has signed Free Trade Agreements (FTAs) and Investment Promotion and Protection Agreements (IPPAs).
In a nutshell, the BUD Fund is suitable for an “exporting” purpose – targeting one (or many) of the jurisdictions in the scope of FTA and IPPA to actively market and sell the enterprise’s products and services.
Access more general info here: https://fta.bud.hkpc.org/en
Branding
Brand Strategy, Brand Building, Positioning and identity, Brand Equity Research, Brand Promotion, and etc.
Upgrading & RestructingNew Product Design, Adoption of Advanced Technology, Management and Logistics System Upgrading, Manufacturing Automotion, and etc.
Promoting SalesMarketing Strategy and Research, Sales Strategic Planning, Sales Channel Establishment and Managment, Advertisements, Promotion of Product(s) / Service(s) and etc.
Note that there may be constraints depending on the types of measure you apply for, for example, if your project is ONLY on Upgrading & Restructuring, you need to have a registered legal entity in the targeting FTA jurisdiction.
Key Facts on the Funding Scheme
Funding on 50:50 matching basis (BUD Fund supports up to 50% of the budget, and no less than 50% should be contributed by the enterprise)
The government will provide full funding support for the audit fee of the approved project, capped at HK$10,000 per audit which will be counted towards the cumulative funding ceiling per enterprise.
The cumulative funding ceiling per enterprise under the Mainland and the FTA and IPPA Programmes is HK$6,000,000 (including audit fee), while the funding ceiling for each approved project is HK$1,000,000 (including audit fee).
One enterprise can submit multiple concurrent applications for multiple projects, but the projects cannot overlap with other government-funded projects (e.g. TVP) and all projects have to be new (not commenced) ones.
During the tenure of the Programme, funding support will be granted to each enterprise for a maximum of sixty approved projects (both Mainland Programme and FTA and IPPA Programme included).
Project Duration: 24 months maximum
Fund disbursement: You can opt-in for Initial Payment (75% of the approved funding, as of Mar 2022) or Reimbursement basis for the disbursement of funds.
Preparing for Application
Application & Vetting Process
Application is open all year round, on a rolling basis.
Under normal circumstances, HKPC, upon consulting IDC and PMC on the assessments, will complete the processing of a valid application within 60 clear working days from the date of receipt of a complete application accompanied by all necessary documentation proof and clarifications as requested by HKPC.
However, based on experience, do note that the back and forth process with HKPC to submit the “complete application” with all the necessary documentation proof can easily take 4-6 months.
Supplementary Documents
Below are the supplementary documents we suggest you submit from Day 1 (including but not limited to the ones directly asked in the submission platform) to reduce processing time:
Copy of Business Registration (with the digital payment record), and the Certificate of Incorporation (make sure the business information such as name, address, etc. are consistent across the documentation.)
Copy of documentary proof of the shareholders on the Annual Return (NAR1)
Proof of substantive ongoing business, supported by:
Documentary proof of latest 6 months’ MPF record summary list with employee names
5-6 sets of latest 6 month’s business transaction documents such as purchase order, invoice, bank in receipt, etc.
Copy of tenancy agreement or lease agreement of the registered office
Documentary proof of the applicant’s annual sales turnover – e.g. if your sales activity happens digitally, a copy of the Stripe payments and invoices, etc.
Latest signed auditor’s report
Additional information on the business such as the customer types
Details
TVP Funding
TECHNOLOGY VOUCHER PROGRAMME (TVP)
Service Providers Selected for Approved TVP Projects
What is TVP ?
The Technology Voucher Programme is an SME funding program of the Innovation and Technology Commission. It aims to support local SMEs to improve productivity and competitiveness, or upgrade or transform their business processes using technological solutions.
Funding applications are accepted all year round
Each entity enterprise may apply for up to 6 projects
Cumulative funding ceiling per enterprise: HKD600,000
TVP CONSULTANT
Let's Upgrade & Transform Business Process
Step 1
We will analyze your business in detail to provide IT Solutions advice and fully assist your company in TVP application.
Step 2
We will help you to write the business plan and prepare documents that ensure your eligibility.
Step 3
We will follow up on the application throughout the process to help you get government funding easily.
Details
EMF Funding
The SME Export Marketing Fund (EMF) aims to encourage small and medium enterprises (SMEs) to expand their markets outside Hong Kong by providing financial assistance to SMEs for participation in export promotion activities
ELIGIBILITYA non-listed enterprise registered in Hong Kong , and have substantive business operations in Hong Kong at the time of making the application.
KEY FEATURESThere is no limit on the number of applications by an enterprise for funding support under EMF. However, each enterprise may receive funding support under EMF up to a cumulative limit of $800,000 and a maximum of 50% of the cumulative limit may be used for applications relating to setting up/enhancing the corporate website/mobile application owned by the applicant enterprise.Each application should cover expenditure related to one promotion activity. The maximum amount of funding support for each successful application is 50% of the total approved expenditure incurred by the applicant enterprise or $100,000, whichever is the less. The amount of funding support for video/product shooting and editing services for each application will be no more than the total amount of government funding approved for all other eligible expenditure items under the same application, i.e. capped at 50% of the total approved government funding per application.
9 major funding areas1. Exhibitions held outside Hong Kong targeting markets outside Hong Kong2. An exhibition in Hong Kong targeting markets outside Hong Kong3. An exhibition in Hong Kong targeting the local market4. online trade fair5. Hong Kong Overseas Business and Trade Mission6. Online business delegation7. Advertising in trade publications targeting markets outside Hong Kong8. Carry out export promotion activities mainly targeting markets outside Hong Kong through electronic platforms/media, such as placing advertisements, searching keywords, uploading product information, establishing, or optimizing online stores, etc.9. Establish or optimize the company website/mobile application owned by the applicant company with markets outside Hong Kong as its main target for export promotion
ASSESSMENTTID will complete the processing of a valid application, including an application for initial payment and the corresponding application for final payment, as well as an application for reimbursement, within 30 clear working days from the date of receipt of the duly completed application accompanied by all necessary documentation.Details
SME Financing Guarantee Scheme
The SME Financing Guarantee Scheme (“Scheme”) was launched on 1 January 2011 by The Hong Kong Mortgage Corporation Limited (“HKMC”). Since 1 May 2018, the Scheme business has been transferred to and carried on by HKMC Insurance Limited (“HKMCI”), a wholly-owned subsidiary of the HKMC.
Objective and Guarantee Coverage
The Scheme aims at helping local small and medium-sized enterprises (“SMEs”) and non-listed enterprises (collectively, “Enterprises”) to obtain financing from participating lenders (“Lenders”) for meeting their business needs so as to enhance their productivity and competitiveness in the rapidly changing business environment. Under the Scheme, the HKMCI may provide guarantee coverage of 50%, 60% or 70% to the credit facilities of eligible Enterprises approved by the Lenders.
Special 100% Loan Guarantee under the Scheme (“Special 100% Loan Guarantee”)
Important Note to Loan Applicants under the Special 100% Loan Guarantee of the SME Financing Guarantee Scheme (“Scheme”):
HKMC Insurance Limited (“HKMCI”) wishes to alert the members of the public to beware of anyone offering to make loan applications or obtain approval for a loan under the Scheme for a fee.
Loan applicants are reminded that:
1. they need not engage or appoint any third party (except the participating lenders under the Scheme (“Lenders”)) to apply for a loan under the Scheme. Any loan application prepared by or submitted through a third party may incur unnecessary financial costs or loss to the applicant and expose the applicant’s personal data to the risk of disclosure to or misuse by an unscrupulous third party;
2. they should apply for a loan under the Scheme directly through the Lenders which will provide assistance without levying any application fee or handling fee; and
3. the Lenders and HKMCI will not tolerate any illegal conduct (e.g. making a false declaration or using a false instrument) and will report suspected illegal conduct to the relevant law enforcement agencies.
To ease the cash flow problems of Enterprises adversely affected by the outbreak of COVID-19, the Financial Secretary announced in the 2020-21 Budget Speech that a Special 100% Loan Guarantee would be introduced under the Scheme. The Special 100% Loan Guarantee aims at alleviating the financial burden of paying employee wages and rents by the Enterprises which are suffering from reduced income and to help minimise the Enterprises shutting down and layoffs. The loans under the Special 100% Loan Guarantee are fully guaranteed by the Government at a concessionary low-interest rate. The Special 100% Loan Guarantee started to receive applications on 20 April 2020.
In order to further alleviate the cash flow pressure of the Enterprises due to the rapid deterioration of the business environment following the outbreak and spread of the COVID-19, the Government has introduced various enhancements to and relief measures under the Special 100% Loan Guarantee.
The eligible Enterprises must have been operating for at least three months in Hong Kong as at 31 March 2022, and have suffered at least a 30% decline in sales turnover in any month since February 2020 (“Affected Period”) compared with the monthly average of any preceding quarter from January 2019 to March 2022 (“Reference Period”), provided that the Affected Period must not be earlier than the Reference Period.
The maximum loan amount for each eligible Enterprise is the total amount of employee wages and rents for 27 months or HK$9 million, whichever is the lower. The maximum repayment period is ten years and the maximum duration of principal moratorium is 30 months.
The application period for the Special 100% Loan Guarantee is until 30 June 2023.
Please refer to the SME Financing Guarantee Scheme Factsheet for detailed features of the Special 100% Loan Guarantee, and the enhancements and relief measures introduced.
Application Procedure
Loan applicants (including the existing Borrowers submitting top-up applications) should contact the Lenders to apply for the loan or credit facility. The Lenders will use their professional expertise, judgement and care in conducting customer due diligence, reviewing each application, and verifying the eligibility of each loan applicant before submitting the guarantee applications and relevant supporting documents to the HKMCI for review and approval.Details
