Haishu District set up mutual-aid fund for SMEs

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Category: Governmental News

Published: Tuesday, 31 July 2012 08:20

Recently, Haishu Districtet has set up its first mutual-aid fund for small and medium-sized enterprises (SMEs). The fund raises 103 million yuan from 44 enterprises and it is aimed to provide lending services for them. The effort is supposed to ease the financial pressure of SMEs by "holding them together".

The Fund is initiated by Haishu Industrial & Commercial Industry Association in a bid to help its member companies who suffer cash-flow problems. Minsheng Bank serves as its financing platform. The first batch of benefiters are those member companies with the financing needs. The fund is used to provide financial guarantee for its members when applying for bank loans. Minsheng Bank will select those companies with good credit, and it might grant bank loans as high as 5 times of the total amount of mutual-aid fund.