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Capital for SMEs may bloom
By Zhang Fengming |
September 7, 2011, Wednesday
|
Print Edition
Print Edition
THE multiplier effect of Shanghai's 3 billion yuan (US$469 million) fiscal support to small and medium enterprises may actually trigger at least 30 billion yuan of capital to help these firms, a senior government official said yesterday.
"We are taking various means to help qualified small businesses to gain access to capital," said Jiang Zhuoqing, deputy secretary general of the Shanghai municipal government and head of the Shanghai Finance Bureau.
The city has set aside 1 billion yuan to buy stakes in commercial guarantee companies which act as guarantors for small businesses to help them get loans from banks as these firms normally lack suitable collateral to secure credit. Another 1 billion yuan is allocated to cover possible bad loans that commercial banks may have from lending to high-tech start-up companies. The third 1 billion yuan is used to invest in high-tech small companies through the city's investment arm.
"The multiplier effect of the 3 billion yuan of capital designated to small businesses is expected to be at least 10 times," Jiang told a press conference hosted by the city government yesterday.
In Shanghai, about 10 percent of small businesses managed to secure loans from banks. More than 300,000 small businesses operate in the city.
Shanghai also expects more than 100 small-sum credit companies to be set up at the end of this year, with an accumulated credit value of 35 billion yuan.
So far this year the city has approved 69 small-sum credit companies and they have extended loans of 12.5 billion yuan.
The city will also hire accountants to offer auditing services to small firms to help them get loans from banks which require financial reports and collateral for creditworthiness checks.
"We are taking various means to help qualified small businesses to gain access to capital," said Jiang Zhuoqing, deputy secretary general of the Shanghai municipal government and head of the Shanghai Finance Bureau.
The city has set aside 1 billion yuan to buy stakes in commercial guarantee companies which act as guarantors for small businesses to help them get loans from banks as these firms normally lack suitable collateral to secure credit. Another 1 billion yuan is allocated to cover possible bad loans that commercial banks may have from lending to high-tech start-up companies. The third 1 billion yuan is used to invest in high-tech small companies through the city's investment arm.
"The multiplier effect of the 3 billion yuan of capital designated to small businesses is expected to be at least 10 times," Jiang told a press conference hosted by the city government yesterday.
In Shanghai, about 10 percent of small businesses managed to secure loans from banks. More than 300,000 small businesses operate in the city.
Shanghai also expects more than 100 small-sum credit companies to be set up at the end of this year, with an accumulated credit value of 35 billion yuan.
So far this year the city has approved 69 small-sum credit companies and they have extended loans of 12.5 billion yuan.
The city will also hire accountants to offer auditing services to small firms to help them get loans from banks which require financial reports and collateral for creditworthiness checks.
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