Chongqing Finance Bureau and Chongqing Administration for Industry and Commerce co-formulated the Provisions for Business Supporting Loans for Chongqing Micro-enterprises to help the micro-enterprises to expand financing, according to Chongqing Finance Bureau on August 15, 2012.
From July 1 on, Chongqing Finance Bureau has given a 1 percentage point discount on the interest rate of business support loans to micro-enterprises, based on the base loan interest rate announced by the People’s Bank of China.
According to the provisions, the individual micro-enterprise with a total loan amount of 150,000 yuan or less can get a financial incentive. And the risk compensation mechanism for business support loans to micro-enterprises, implemented by Chongqing Finance Bureau, continues to take effect. It means that the loss resulting from offering business support loans to micro-enterprises will be assumed by Chongqing Finance Bureau (1/3), local finance bureaus (1/3) and the offering banks as well as the guarantee agencies (altogether 1/3). The expiry date of this policy is prolonged to 2015.