Guaranteed loans on way for small business

The Secretary for Commerce and Economic Development, Edward Yau, said today that a scheme, in which the government offers a full guarantee to companies taking out low-interest bank loans, could be rolled out by the middle of this month at the earliest.

He said under the scheme, which was announced in February's budget, businesses could enjoy a one-year principal moratorium, with the loan capped at HK$4 million.

Speaking on an RTHK radio program, Yau said the government was prepared for the risks and he hoped the scheme could help small businesses deal with the impact of the coronavirus outbreak.

He said  business had dropped by up to 80 percent at many companies because of the virus epidemic, with the tourism industry seeing virtually no business.

Yau also said the government was still unsure whether the annual book fair could still go ahead as planned in July due to the epidemic. But he said, if it does take place, the government was willing to shoulder its exhibition fees, which come to around HK$40 million.