(Budget 2026) Govt to inject $200million into the 'Easy BUD' fund for SMEs

In the face of multiple challenges posed by online shopping and changing consumption patterns, the government will implement various measures to support local enterprises, Financial Secretary Paul Chan Mo-po said.

The Government will inject HK$200 million into the Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund) and raise the upper limit of  "Easy BUD"   funding to $150,000 per application, and provide more targeted funding support for enterprises in AI applications, according to Chan.

The authorities will continue providing loan guarantees to enterprises through the SME Financing Guarantee Scheme to support local small and medium-sized enterprises (SMEs). The application period for 80 percent of the Guarantee Product has been extended to the end of March 2028. 

In addition, the application period for the principal moratorium arrangement will run until mid-November this year. The total loan guarantee commitment under the Scheme will increase by HK$20 billion, Chan said.

The Hong Kong Export Credit Insurance Corporation will introduce a pilot scheme this year to protect SMEs engaging in exports with higher-risk buyers.

For Hong Kong's food industry, Chan said its reputation for quality can be leveraged to further expand into the Mainland and international markets.  

The government will continue to seek market access and simplified customs arrangements of the Mainland for a wider range of local food products.  The Centre for Food Safety will waive the fees related to the certification of food products for two years.  

In addition, the government will introduce a new unified brand for local agricultural and fisheries products in the middle of this year, supported by a certification, testing and traceability mechanism.

To promote further development of the exhibition industry and brand building as an international convention and exhibition hub, Chan said the government will assign HK$100 million for attracting large-scale international exhibitions with new elements to Hong Kong through collaborating with relevant organisations on a pilot basis. 

The city’s objective is to develop Hong Kong into the first‑choice platform for showcasing Mainland and international brands, while attracting high‑spending business visitors to Hong Kong and driving high value-added economic activities, Chan said.