US$53.6m in loans processed to bail out local tech firms

Shanghai has processed 75 loan cases totaling 360 million yuan (US$53.6 million) to alleviate financial demands of technology firms during the shutdown.

Vice Mayor Liu Duo said that local officials have been putting in place a number of steps to help technology businesses since April 2.

One option is to give enterprises that are unable to repay the principle a green channel to refinance and seek extensions in order to alleviate their current financial stress. To date, 75 loan cases totaling 360 million yuan have been concluded thus far.

Furthermore, banks are urged to use Internet platforms to speed up loan approval.

At the same time, banks, insurance companies, and guarantee institutions are being pushed to lower their interest rates and fees so that the costs of funding for small and medium-sized technology businesses don't rise above what they were during the same time in 2021.

Another favorable strategy is to boost the amount of "innovation vouchers" from 300,000 to 500,000 yuan.

Local small-to-medium technology enterprises can use an "innovation voucher" to pay for professional services including strategic planning, research and development, and employee training. Companies can submit applications by visiting http://cxq.stcsm.sh.gov.cn/.

Nearly 200 businesses have received "innovation vouchers" worth more than 10 million yuan. One of them, Orient-Semiconductor Technology in Jing'an District, has used the money to pay for the certification of its own chip technologies.