Start Me Up

The Macao Economic Services (DSE) approved lending of MOP53.7 million (US$6.7) million) to the city’s SMEs and young start-ups in August via four of its financial aid programmes, according to the Bureau’s latest official data. For the month, local SMEs received MOP46.5 million-worth of loans from the economic department via its three SME aid programmes. Of the total, MOP34.7 million was disbursed under the SME Credit Guarantee Scheme – providing each beneficiary with a credit guarantee equal to 70 per cent of the loan approved by the participating banks. The approved lending in the month was shared among 16 approved applications. For the first eight months of the year, this scheme has approved lending of nearly MOP90 million, of which 25.5 per cent, or MOP22.9 million, was disbursed to those engaged in the wholesale industry, while 19.3 per cent, or MOP17.3 million, was approved for retail businesses. Meanwhile, a similar scheme but designated for special projects also approved MOP2 million-worth of loans to two applicants last month. These two companies engaged in the F&B business and the processing industry, respectively. This special scheme offers credit guarantees of up to 100 per cent of approved bank loans for SMEs to finance special projects. Another SME-supporting regime, the SME Aid Scheme, granted loans of MOP9.9 million for 30 applicants in the same month. The approved amount is down 43.8 per cent compared to MOP17.6 million in July. With this aid scheme, the government grants loans of up to MOP600,000 per applicant for different financing purposes; companies have as many as eight years to repay the loan. Between January and August approved loans under the scheme accounted for MOP144 million. Of the total, 26.5 per cent, or MOP38.2 million, was granted to retail companies, whilst 15.6 per cent, or MOP22.5 million, was given to firms engaged in construction. Young start-ups On the other hand, the Bureau approved 33 applications for loans under the Young Entrepreneur Aid Scheme last month, granting MOP7.1 million. Accumulatively, the total amount of loans approved via the scheme reached MOP43.4 million for the first eight months of the year, benefiting some 200 young start-ups. Analysed by sector, 45.4 per cent of the approved lending, MOP21 million, went to the retail industry. Young start-ups in the F&B and hotel business were given MOP7.5 million, accounting for 16.1 per cent, followed by real estate firms that received MOP4.6 million, some 10 per cent of total approved lending in the eight months. The Young Entrepreneurs Aid Scheme, implemented in August 2013, offers interest-free loans of up to MOP300,000 (US$37,500) for young people to start their own business. Entrepreneurs aged between 21 and 44 are eligible for a loan for eight years, with repayments starting after 18 months.