Guangxi launches loan subsidy policies to aid disaster-hit businesses
(ECNS) -- Authorities in China's Guangxi Zhuang Autonomous Region have rolled out a targeted loan program to help businesses in areas stricken by recent earthquakes, typhoons and floods, the regional finance department said on Thursday.
The policy will provide financial aid to eligible enterprises registered and operating in the disaster-affected cities, including Nanning, Liuzhou, Fangchenggang, Qinzhou and Guigang. It covers sectors hard hit by the disasters – including industry, transport, wholesale and retail, catering and accommodation, tourism, farming and aquaculture, warehousing and logistics, construction, as well as residential and comprehensive management services – along with suppliers of emergency and reconstruction materials, authorities said.
The regional government has raised subsidy levels to ease financing pressures. The base interest subsidy is 1.5 percentage points – 0.5 points higher than for other subsidized loans – for up to one year. The annual cap per borrower has been raised to 3 million yuan (about $444,000) from 1 million yuan, and the lifetime cap to 6 million yuan from 2 million yuan.
For businesses that obtain credit enhancement from guarantee institutions, the regional government also offers a guarantee-fee subsidy of 0.6 percentage points, 0.2 points above the standard rate, likewise for up to one year. The annual cap on such subsidies has been lifted to 1 million yuan from 400,000 yuan, and the cumulative cap to 2 million yuan from 800,000 yuan.
Both subsidies are fully funded by the regional government.
(By Zhang Dongfang)