Three Key Relaxations in 2026

The BUD Special Fund will undergo a substantial expansion in 2026, with three key initiatives set to be implemented within a six-month period:

1. The scope of funding has been expanded to 48 economies: Effective June 15, 2026, eight new markets—including Saudi Arabia, Egypt, Hungary, and Brazil—have been added.
2. The maximum amount per application for “Easy Application” has been increased from 100,000 Hong Kong dollars to 150,000 Hong Kong dollars.: For small-scale, standardized projects, the approval process is relatively streamlined.
3. SME Marketing Fund Merged into BUD: Effective July 1, 2026, marketing grants—which were previously applied for separately—will be integrated into the BUD system.

At the same time, the 2026–27 budget announcedInject an additional HK$200 million into BUD. The simultaneous expansion of funding pools and lowering of entry barriers present a rare window of opportunity in recent years for small and medium-sized enterprises looking to expand into new markets.

SpecificallyContribution Ratio, Cumulative Cap per Enterprise, List of Eligible ExpensesFor details such as these, please refer to the latest information published on the Bureau of Productivity Promotion (BUD) website.

First, let's figure out whether to go through the ”Easy Application” process or the standard program.

This is the first fork in the road before submission; choosing the wrong path will waste an entire round of review time.

• Easy Application: For projects involving smaller budgets and standardized content, such as participating in trade shows, placing advertisements, producing promotional materials, and setting up or optimizing online stores.For standard promotional activities with a budget of up to 150,000 HKD, prioritize this approach.
• General Projects: For projects involving a comprehensive brand upgrade and transformation, large-scale expansion of domestic sales, systematic consulting, or capital investment in equipment, a more detailed project proposal and performance metrics must be submitted.

The criteria are quite straightforward:Can you explain ”what to do, how much it will cost, and what results will be achieved” clearly in one or two pages? Those who can explain their case clearly should apply through the "Easy Application" track; those who cannot should apply through the general program.

How to Choose Among 48 Economies: Don’t Just Look at Market Size

The newly added markets—Saudi Arabia, Egypt, Hungary, and Brazil—are all fast-growing markets where Hong Kong-funded enterprises have yet to make significant inroads.Competition in these markets is typically less intense than in mature markets, with less pressure to offer homogeneous pricing, making them more conducive to trial-and-error for small and medium-sized enterprises.

Companies operating in the European market now face an additional practical consideration this year:Effective July 1, 2026, the European Union will end the duty-free exemption for small parcels valued at 150 euros., During the transition period, a fee of 3 euros will be charged per declaration line based on the HS code. The profit margin from the model of scaling up volume through direct mail of small packages has been directly eroded, making the shift to local warehousing, local distribution channels, and local compliance even more necessary—And the upfront investment in localization is precisely the area that BUD can cover.

We recommend prioritizing based on ”existing customer leads + competitive landscape + compliance barriers” and selecting 1–2 markets to focus on in depth, rather than expanding into five or six at once.

The Three Types of Applications Most Likely to Be Rejected

1. The project has a weak connection to the three main objectives of ”developing the brand, upgrading and transforming, and expanding the market.”. Including routine office expenses and regular labor costs in the budget is generally not recognized as eligible expenses.
2. Performance metrics are not measurable. It’s difficult to get approval for a goal like ”increasing brand awareness”; it’s safer to use verifiable metrics such as ”number of new inquiries from target markets” or ”value of new orders signed within six months of the trade show.”
3. The expense was incurred before approval was granted.. Most funded projectsExpenditures that have already been incurred or committed are not retroactively accounted for....Spending money first and then applying is the most common pitfall.

Just a quick reminder:Before submitting, be sure to verify that the business registration is valid and that the company is in good standing., BUD applications are typically directly linked to the registration and incorporation status of Hong Kong companies.

A Workable Roadmap for Moving Forward

• T-2 months: Identify the target market and project type, and request a formal quote from the service provider.
• T-1 month: Prepare the project proposal, company documents, and business registration certificate, and review the list of eligible expenses.
• Month T: Submit an application,Do not sign any binding contracts or pay any deposits before approval is granted.The
• After approval: Carry out the work in accordance with the approved scope; retain invoices, payment receipts, and performance data; and submit summary reports on a regular basis.

By the way: There are other tools for managing cash flow.

If the bottleneck is not ”project investment” but ”working capital,” you may also want to consider the SME Financing Guarantee Scheme. The 2026/27 Budget increased the scheme’sTotal commitments increased to HK$310 billion, 80 percent of guaranteed productsExtended through the end of March 2028,”Interest-Only” ArrangementExtended through mid-November 2026. This funding does not conflict with BUD; one addresses order turnover, while the other covers market expansion investments.

Qicaiying offers one-stop services for company registration, annual returns, and audit and tax filing in Hong Kong. We can assist in preparing the required documents—such as proof of company existence, business registration, and financial statements—well in advance when applying for such grants, ensuring that all materials are submitted in one go and minimizing the need for follow-up work.