An application to inject $2.5 billion into a special fund to help small and medium-sized businesses was approved by lawmakers yesterday.
The plan is part of a special package of economic relief measures announced by the Chief Executive on June 22.
Under the scheme, each firm may apply for a guarantee from the Government of up to $2 million, or an amount up to 50 per cent of a loan offered by a lending institution, whichever is lowest.
The scheme could support 1,250 small and medium enterprises in the first year, officials said.
Some legislators expressed fears that the limit of 365 days on the guarantee was too short. They argued that some enterprises feared they might see their credit lines cut when the year expired.
Sophie Leung Lau Yau-fun of the Liberal Party said: 'It's not workable.' But Secretary for Trade and Industry Chau Tak-hay said the time limit of 365 days was to ensure a new set of applicants benefited each year.
