Government funding, TVP, BUD, ESP

TVP & BUD government fund consultant

26/02/2019 by Rina Tse (A&A Limited)

Introduction

For enterprises wanting to improve their competitiveness but without the necessary monetary capital to do so, government-funding schemes, Technology Voucher Programme (TVP), and Branding, Upgrading and Domestics Sales Fund (BUD), are here to help. This article will discuss the details of both TVP and BUD in order for you to choose the most appropriate program for your business.

Source: https://www.itf.gov.hk/l-tc/TVP.asp

 What is TVP?

TVP has been executed for “an initial period of three years from November 2016 with HK$500 million from the Innovation and Technology Fund (ITF)”, which intends to support SMEs on the use of technological services and solutions to boost productivity, or enhance or transform their business processes [1]. Yet, the eligibility of TVP has been relaxed since February 2018, as an applicant enterprise is only required to have “substantive business operation in Hong Kong at the time of application” instead of having it for a year [2]. TVP is now also qualified for non-listed enterprises of all sizes instead of just for SMEs.

What is the funding amount?

Each qualified enterprise will be offered cumulative funding up to HK$20,000 on a 2:1 matching basis for three projects. The company must be obliged to “contribute no less than one third of the total approved project cost in cash” [2]. Moreover, expenditure items under a permitted TVP project cannot accept financial support from other local funding programs.

Source: https://www.bud.hkpc.org

What is BUD?

BUD has been implemented since June 2012, offering financial support to individual Hong Kong enterprises in “undertaking projects to develop brands, upgrade, and restructure their business operations and promote sales in the Mainland market” [3]. This program aims to improve local organizations’ competitiveness and facilitate their business development in Mainland China.

Furthermore, the Hong Kong government has launched BUD Fund in August 2018 to provide monetary support to local enterprises to increase their effectiveness and make their business expansion possible in the ASEAN markets, which include countries like Singapore, Thailand, Vietnam, Indonesia, Malaysia, and more.

What is the funding amount?

Each eligible enterprise will receive cumulative funding up to HK$1 million on a 1:1 matching basis for a maximum of ten projects. The company must be obliged to “contribute no less than 50% of the total project cost in cash” [4].

Source: https://www.hkpc.org/en/industry-support-services/latest-information/6672-bud-esp-fund?template=hkpc_text

What is BUD (ESP Normal Track – Simplified Option)?

In October 2016, the “Enterprise Support Program (ESP) Normal Track – Simplified Option” was launched to speed up the implementations of BUD Fund projects. This is because a company “can start implementing the project on the day after submitting the application and without having to wait for the signing of the agreement” [5]. The objective of ESP Normal Track – Simplified Option is the same as BUD but the main differences are that there is no upfront payment disbursed by the government and the requirement of opening a designated project account is waived.

What is the funding amount?

For ESP Normal Track – Simplified Option, maximum grant for each eligible enterprise is HK$500,000 on a 1:1 matching basis. It is also stated that related spending incurred after the application submission date can be accepted and funded, “provided that the project measure was within project duration and included in the project proposal approved by the PMC” [6].

How can A&A Limited help?

In order to apply for either one of these funding programs, there are many required documents to be submitted, which include “invoices or commercial contracts issued within three months before submitting application, the latest audited account, and taxation assessment, issued quotation or tender invitation documents, quotations submitted by the bidders showing their detailed contact information”, and more [7]. A comprehensive business plan is also necessary to apply for these funding schemes successfully. Therefore, A&A is not only here to help with the hassle administrative work for the application, but we are also here to assess, discuss, and plan for your business in order to lead to the highest possible ROI. A&A will provide professional consultancy services through digital transformation, digital commercialisation, and business optimisation. We will conduct a current-state assessment for your business, advise actionable digital solutions, and develop a digital strategy roadmap in order to reach your utmost potential. Put it simply, A&A will assist you through the whole complicated application process, making it easier than ever before.

Conclusion  

The Hong Kong government has launched some funding programs, such as Technology Voucher Programme (TVP), and Branding, Upgrading and Domestics Sales Fund (BUD) to encourage local businesses in enhancing their competitiveness and improving their productivity. To speed up the implementations of BUD fund projects, Enterprise Support Program (ESP) Normal Track – Simplified Option was also launched. It is evident that TVP and BUD target two different areas, and so it is important for businesses to research and consult which is the most appropriate one for them.

References

[1] https://www.itf.gov.hk/l-eng/Forms/tvp-guide-e_2018_02.pdf

[2] https://www.itf.gov.hk/l-eng/TVP.asp

[3] https://www.smeone.org/index.php?option=com_content&view=article&id=360:bud-enterprise-3&catid=65&Itemid=271&lang=en

[4] https://www.bud.hkpc.org/en

[5] https://www.hkpc.org/en/industry-support-services/latest-information/6672-bud-esp-fund

[6] https://www.smeone.org/index.php?option=com_content&view=article&id=54%3Abud-enterprise&catid=49&Itemid=255&lang=en

[7] https://www.itf.gov.hk/l-eng/Forms/AttachmentChecklist-e(Feb%202018).pdf