Hong Kong to implement enhancement measures for BUD Fund and SME Export Marketing Fund

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The measures will involve adjustments to the application limit, the funding scope, the funding ceiling, matching ratio, and rationalisation of other parameters of both schemes.

Hong Kong’s Trade and Industry Department (TID) has announced details to implement enhancement measures for the Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund) and the SME Export Marketing Fund (EMF) to provide more focused and sustainable support to small and medium-sized enterprises (SMEs).

The enhancement aims to provide more targeted support to SMEs, encourage them to enhance competitiveness and tap into markets outside Hong Kong.

For the BUD Fund:

• Instead of every six months at present, each applicant enterprise will be able to submit one 'Easy BUD' application every three months.
• The funding scope of the 'Easy BUD' application will be expanded to include the establishment of an online sales platform.
• The BUD Fund will expressly provide for funding support for professional fees associated with the establishment of new business entities in eligible markets.

For the EMF:

Upon expiry of the EMF's special measures on 30 June 2026, the Government will consolidate the EMF into the BUD Fund. Enterprises may undertake promotional activities in the context of upgrading and transformation to attain synergy.

Meanwhile, for rationalisation of operations and for ensuring financial sustainability of the funding schemes, the Government will implement the following measures:

The BUD Fund

• Adjusting the matching ratio from 1 (Government):1 (Enterprise) to 1:3 of the total approved expenditure. Audit fees will also be subject to the matching ratio of 1:3.
• Adjusting the initial payment from 75% to 20% of the approved Government funding.
• Adjusting the funding ceiling for each approved General and ‘E-commerce Easy’ project from HK$1mn to HK$800,000, and limiting the total approved Government funding for an applicant to not exceed HK$800,000 at any one time.
• Limiting the number of general and ‘E-commerce Easy’ applications that can be submitted by each enterprise to one in every three months, in line with ‘Easy BUD’. Applicants should have fulfilled their obligations for completed projects before their new applications are processed. Batch processing will be adopted for general and 'E-commerce Easy' applications.
• Adjustments to fundable items (viz. scope of fundable items under setting up of a new business entity, recruitment of additional manpower, and duration of management fees for placement of advertisements and establishment of online sales platforms).

The EMF

• Adjusting the matching ratio from 1 (Government):1 (Enterprise) to 1:3 of the total approved expenditure. There is no change to the funding ceiling per application, HK$100,000.
• Adjusting the initial payment from 75% to 20% of the approved government funding.
• Upholding additional requirements on selected expenditure items eligible for the EMF with a view to controlling the maximum amount of funding, including the funding ceiling, validity period of activities, restrictions on the number of repeated applications of a similar nature on certain activities, etc.

These measures will apply with respect to applications received from 0.00am, 14 March 2025, onwards.

The spokesperson said, "Supporting SMEs remains one of the Government's important policies, but we are also mindful of the fact that all support measures should be subject to constant review to ensure that they remain effective in the ever-changing economic environment."