Government Subsidies
1. Youth Entrepreneurship Aid Scheme
To encourage the youth of Macao to explore new options and opportunities other than traditional career tendencies and realize their entrepreneurship aspirations, as well as to inject new impetus into Macao’s economic development, the SAR Government has set up the Young Entrepreneurs Aid Scheme under the Industrial and Commercial Development Fund (FDIC) to provide interest-free assistance to local youth with entrepreneurship aspirations but lacking resources for helping to alleviate their financial pressure during the early stage of their entrepreneurship.
Applications are open to young entrepreneurs of Macao and limited companies that have over 50% of their capital contributed by young entrepreneurs of Macao.
Assistance shall be dedicated to the following purpose(s):
1) Purchase of equipment needed for the commercial enterprise’s operation
2) Decoration works carried out for the commercial enterprise’s business premises
3) Entering into commercial concession contracts or franchising contracts
4) Acquisition of rights to exclusive use of technology or intellectual property rights
5) Conducting publicity and promotion campaigns
6) The commercial enterprise’s working capital
The maximum amount of assistance is MOP300,000.00 (three hundred thousand patacas), with a maximum repayment period of 8 years.
2. SME Aid Scheme
In May 2003, Macao SAR introduced SME Aid Scheme in response to the economic situation of the society at that moment. This scheme provides interest-free financial assistance.
Through the revised legal regime, the fund appropriated for “SME Aid Scheme” can be used to finance:
1) Purchase of equipment (includes machinery for production, investment items such as computer or automation hardware and software that enhance productivity and production capacity) needed for operation
2) Renovation, decoration and expansion projects
3) The capital for signing commercial concession contract or franchising contract
4) Acquisition of exclusive right for use of technology and intellectual property
5) Advertising and promotional activities
6) Enhancement of capability for operation and competitiveness
7) The working capital
8) For SMEs directly affected by extraordinary, unpredictable matters or matters which are beyond human control, especially natural disasters or epidemic diseases, or dramatic changes in the business environment that rise the operating expenses or affecting the operating conditions of an enterprise.
The maximum amount of aid per enterprise is MOP 600,000. The maximum period for repayment of the loan is 8 years.
3. SME Credit Guarantee Scheme
“SME Credit Guarantee Scheme” provides each beneficiary with credit guarantee equals to 70% of the loan approved by the participating banks, and the maximum amount of guarantee offered is MOP 4.9 million. The amount of credit guarantee provided excludes the interest and any other expenses related to repayment of the loan.
“SME Credit Guarantee Scheme” supports the development of SME in Macao and aims to assist them to be financed by banks through offering of credit guarantee. The loan obtained could not be used to repay current debt. Other than that there is no limitation on the form of loan.
The repayment period of the loan is limited to a maximum of 5 years, counting from the drawdown date.
4. SME Credit Guarantee Scheme Designated for Special Projects
“SME Credit Guarantee Scheme Designated for Special Projects” provides credit guarantee of up to 100% of the amount needed for SME to finance special projects, so as to support them to develop projects to reform and alter their type of business; to promote and advertise their own brands; to improve quality of their products; or to develop new business.
On the other hand, this scheme aims to assist SME to acquire from banks the capital needed to resolve short-term financial difficulties arising from payment of employees’ salary, rental expenses of venue of operation, etc., if these SME are directly affected by extraordinary, unpredictable matters or matters which are beyond human control, especially natural disasters or epidemic diseases.
The maximum amount of guarantee offered per each beneficiary under this scheme is MOP 1 million. Moreover, the amount of credit guarantee provided excludes the interest and any other expenses related to repayment of the loan.
“SME Credit Guarantee Scheme” supports the development of SME in Macao and aims to assist them to be financed by banks through offering of credit guarantee. The loan obtained could not be used to repay current debt. Other than that there is no limitation on the form of loan.
The repayment period of the loan is limited to a maximum of 5 years, counting from the drawdown date.