In order to alleviate the difficulty and high cost of financing for entrepreneurs, Huai'an Municipal Bureau of Human Resources and Social Security, together with Huai'an Municipal Finance Bureau and Huai'an Central Branch of People's Bank of China, recently launched the Implementation Measures of Loans to Enrich People and Guarantee Entrepreneurship in Huai'an.

Lowering the Threshold

By lowering the threshold of loan application, the proportion in small and micro enterprises of the newly recruited and qualified key members to the existing employees has been reduced from 20% to 15%, and that of enterprises with more than 100 employees has been reduced from 10% to 8%. The requirement of counter guarantee will also be reduced, and newly issued loans of less than 100,000 yuan will be exempted.

Expanding the Scope

All urban and rural entrepreneurs in Huai'an, including those with nonlocal household registration, will be included in the scope of support.

Raising the Quota

For individual entrepreneurs who employ less than three employees, the maximum amount of loans will be increased from 150,000 yuan to 200,000 yuan. The upper limit of loans for individual entrepreneurs is 500,000 yuan, and for small and micro enterprises is 3 million yuan.

Extending the Length of Loan

The longest loan term for individual entrepreneurs shall not exceed 3 years, and those who have more than 10 employees and repay the loans actively can apply for three times; as for small and micro enterprises, they shall not exceed 2 years, and the cumulative times shall not exceed 3. If the enterprise runs into troubles due to the epidemic outbreak, the repayment can be extended.

Cutting Interest Rates

After the loan is repaid on time, 10 kinds of key groups will be given full discount interest supported by loans less than 150,000 yuan (inclusive); for loans with an amount between 150,000 and 300,000 yuan (inclusive), the discount shall not be higher than the LPR on the contract signing date, and for loans over 300,000, it shall not be higher than 50% of LPR on the signing date; the above standards shall be implemented in half for other entrepreneurs. The discount rate of small and micro enterprises shall not exceed 200 BP.

Providing Excellent Service

The city will simplify and digitalize the examination and approval procedures, and gradually implement the whole online processing as well as "one-stop service", so as to save the time cost of entrepreneurs and reduce the times of running errands.

Since the beginning of this year, the number of loans granted by Bureau of Human Resources and Social Security to enrich people and guarantee entrepreneurship at all levels has reached 1361 with total 264 million yuan, an increase of 32.7% year on year. Among them, 21 million yuan of enterprise loans has been issued, with a year-on-year growth of 29.6%.