Shanghai to offer funds at lower cost to technology and innovation companies
Shanghai's Yangpu District will offer funds to technology and innovation companies under a financing program that seeks to cut the cost of loans.
The Ke Chuang Bao program, launched on Friday, allows qualified medium, small and micro technology companies to acquire unsecured loans from designated banks at preferential rates, and get subsidies from the government to cover part of the interest and guarantee fees.
Shanghai Yangpu Financing Guarantee Co is the official guarantee provider of the program whose initial credit quota is 400 million yuan (US$61 million) while the Yangpu branches of China Construction Bank, Shanghai Pudong Development Bank, Bank of Shanghai, and Shanghai Rural Commercial Bank are the lenders.
Companies applying for the loans must be registered in Yangpu District and have been operating in high technology and emerging industries for more than a year. Their current debt-to-asset ratio must be below 75 percent, and their use of loans is subject to inspection from banks and the guarantee company.
The program was initiated by the Shanghai Office for Promoting Development of SMEs and the Yangpu Financial Services Office.