Many SMEs start to adopt technology solutions to optimise their operating models while always don’t know how to proceed further under the constraints of time and cost. Innovation And Technology Commission (ITC) launched Technology Voucher Programme (TVP) which provides financial assistance to local SMEs to initiate digital transformation through technology. What businesses are eligible to apply for TVP? How long does it take to receive the funding? How to apply for the first installment? Let’s read on to help you execute digital transformation at ease.
Funding amount: Maximum HKD 600,000?
Launched in November 2016, TVP aims to support local businesses in adopting technology to achieve business process upgrading and transformation. TVP accepts application throughout the year, and each company can get funding for up to 6 projects, with a total funding ceiling of up to HKD 600,000. The funding is allocated on a project-by-project basis at a ratio of 3: 1 (Government: Company), meaning the government bears 75% of the project expenses and company bears the remaining 25%. Please note that you can only submit one project at any one time and complete each project within one year.
What businesses are eligible to apply for TVP?
TVP is designed to support local businesses to increase their competitiveness by introducing technology gadgets, improving business productivity, optimizing business processes and even speeding up digital transformation. In other words, the funding is suitable for companies who wish to digitize their existing businesses. TVP covers a wide range of scope, attracting applications from different industries. Common industries include logistics, retail, catering and accounting industries, etc. The basic application eligibility of TVP is as follows:
1. Not a listed company in Hong Kong, and not a government subvented organization or subsidiary of any government subvented
2. Incorporated and registered in Hong Kong and its business is related to the project under the application*
3. The applicant must meet one of the below requirements:
Registered in Hong Kong under the Business Registration Ordinance (Cap. 310)
Incorporated and registered in Hong Kong under the Companies Ordinance (Cap. 622)
Established in Hong Kong by relevant ordinances as statutory bodies
*For details on the definition, please refer to official document - Annex A(https://www.itf.gov.hk/filemanager/en/content_38/TVP_Guidance_Notes-e_March_2023.pdf)
Highlight of the funding scopeÂ
Both SMEs and sizable corporation can make use of TVP in many use cases, and hence making it difficult  to list out all eligible projects. The table below provides examples of technology applications across industries, as well as the popular project application among SMEs:
Sector | Examples of technology applications |
Logistics | Adopt order tracking system for staff to update shipment records and allow customers to check order status |
Retail | Introduce CRM system to collect and analysis member data |
Catering | Introduce POS: customer can order their meals by scanning QR code on mobile |
Accounting | Adopt Cloud / AI software to manage some repetitive computing tasks such as salary calculation and keeping track on the financial performance within the company. |
Popular TVP projects for SMEs:
Online store/App/E-commerce platform
Customer Relationship Management (CRM) system
Enterprise Resource Management (ERP) system
POS retail sales system
Human Resource Management (HRM) system
Chatbot
Cloud Solution
Database Management
Warehouse Management System (WMS)
TVP application procedure
The maximum amount of each application for TVP is up to HKD 600,000. There are a few stages of the application. To avoid funding delay, it is better for applicants to check regularly on the progress with relevant parties during the application:
Application process
1. Obtain quotations from service providers and signed letters of fiduciary and unsolicited quotation/bid confirmations
2. Submit application and attach required documents to Technology Voucher Programme Funding Administrative System
Application website  | Technology Voucher Programme Funding Administrative System: https://tvp.itf.gov.hk/  |
TVP application guideline (please go to Appendix 3 for required documents)Â Â |
3. Undergo internal review
General review standards
Relevancy of the project and applicant’s business
Whether the budget and implementation details are reasonable
Whether the technical consultants/service providers have bad records in the past
4. Successful applicants shall sign the funding agreement with Secretariat
5. Apply for first installment as needed - Receive up to 25% of the approved amount
6. Start and complete the project within 1 year and submit the final report and expenditure report
7. The Secretariat notifies the applicant on the results in written format
8. Reimbursement
How to apply for TVP first installment? Â
Many companies hope to have upfront support when adopting innovative technology. In fact, TVP provides first installment application in which successful applicants can receive up to 25% of the approved amount. Below are the procedures for applying the first installment:
Submit first installment application after signing the funding agreement
Provide a separate corporate bank account dedicated to receiving TVP that this account can only be used to handle income and expenses of the relevant project
Deposit designated amount into the bank account (deposit according to 3: 1 matching basis)
Reimburse the first installment to the successful applicants
First installment issue method
The first installment will be capped at 25% of the approved project amount and will only be released after the applicant has deposited the designated funds into the corporate bank account.
Examples:
Assuming the approved amount of the project is HKD 400,000, of which HKD 300,000 is borne by the government while the remaining HKD 100,000 is borne by the applicant. Â Applicants are required to deposit a designated amount according to 3: 1 ratio, i.e. deposit HKD 25,000 (25% of HKD 100,000) themselves, then provide deposit proof. Â The first installment of HKD 75,000 (i.e. 25% of HKD 300,000) will be reimbursed after confirmation.
How long does the approval take?
Upon receiving the application, the Innovation and Technology Department will assess the eligibility and the reasonableness of the applicant based on the relevance of the business, the budget and the project details, and check the probity of the technical consultants or service providers to ensure no adverse record are found. The actual approval time depends on the number of applications received at the time, the complexity of the application and the completeness and clarity of the information submitted, etc. The Secretariat may ask applicants to provide clarification or submit supplemental information during the assessment period, and the applicants must submit the documents within one month of receipt of the relevant requests.
For the final payment, applicants must submit the following documents to the Secretariat through Technology Voucher Programme Funding Administrative System within two months after the project is completed:
Click here to visit Technology Voucher Programme Funding Administrative System:Â https://tvp.itf.gov.hk/en-US/Home/Index
Final project report
Evidence of deliverables (e.g. consultancy report(s), delivery receipt(s), computer screen captures of software systems, photos of equipment/hardware, record(s) of training conducted such as photos and training material(s) etc.)
Original or copy of invoice(s) and corresponding receipt(s) in relation to the payment for each expenditure item. The name of the payer on the invoice(s) and receipt(s) must be the same as the name of the applicant
If the approved funding exceeds HKD 50,000, you need to submit an audited statement of income and expenditure for the project from an independent auditor to the Secretariat.
