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Many governments also provide enterprises with The above suggestions regarding taxation and rents are
government-guaranteed low-interest loans. Launched in 2011 summarised below (see Table 6):
by the Hong Kong SAR Government, the SME Financing
Guarantee Scheme aims to help local SMEs and non-listed
enterprises obtain financing from participating lenders to meet Table 6 Summary of proposed policy incentives
for the Loop
their business needs. Eligible enterprises may enjoy subsidised
interest rates and guaranteed coverage for 5 to 7 years by the Policy Incentive Proposal
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Hong Kong government. Starting from 2020, the Shenzhen
government has provided guaranteed loans for start-ups. The loan R&D tax refund in the Loop
is offered by a government-guaranteed fund (guaranteed loan ratio Tax concession Tax exemption for enterprises with
not exceeding 90%), which also subsidises the loan interest for headquarters or R&D centres in the Loop
enterprises. The loan supports personal start-ups registered
within the previous three years and lenders targeting job-creating Rent reduction Setting more competitive rents
incentives
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small-sized enterprises. Since it takes time for biotech
enterprises to generate a profit, it is rather difficult for them to Low-interest The government acts as bank loan
acquire loans, and as such, more generous financing is required. loans guarantor to offer generous loans
We suggest that both governments relax their criteria, such as by
expanding the categories of enterprises covered (not just new
business starters) and raising the guaranteed loan ratio. By acting
as the loan guarantor, the governments can stimulate banks to
issue more low-interest loans to biotech enterprises.

44 Refers to the “Implementation methods of Loan Guaranteed for Start-ups in Shenzhen” issued by the Shenzhen government in 2020.
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