East China’s Jiangsu province will increase the credit support for small and medium-sized modern service enterprises in a bid to reduce the financing threshold and financing cost under the impact of the covid-19 epidemic, according to a preferential loan issued by the Provincial Department of Finance and the Provincial Development and Reform Commission.
The preferential loan for the service industry launched by Jiangsu is aimed at medium-sized, small and micro modern service enterprises that meet the national classification standards.
The Provincial Development and Reform Commission will implement a whitelist management on the preferential loans by listing candidate enterprises in the enterprise database.
Within the agreed range of non-performing loan ratios, the Provincial Inclusive Finance Development Risk Compensation Fund assumes 80% of the loan principal loss risk of Jiangsu's service industry preferential loans.
Enterprises that meet the preferential loan standards can apply online through the provincial inclusive finance development risk compensation fund service platform.
Enterprises can obtain a one-year working capital loan of up to 5 million yuan. The loan interest rate is not higher than LPR + 80 basis points, thereby reducing the financing threshold and financing cost.
