Interest Rate Reduction by 1% for Service Industry Enterprises; Highest Subsidy Amount of ¥100,000! China's Financial Policy Supports Service Industry Enterprises
On August 12th, the Ministry of Finance and eight other departments jointly released the Implementation Plan for the financial support policy for service industry enterprises, providing a 1% interest rate reduction and a maximum subsidy amount of ¥100,000 per household. The policy aims to support service industry enterprises in eight consumer sectors: catering, accommodation, health, elderly care, child care, domestic services, cultural entertainment, tourism, and sports.
The policy requires that the loan funds be used to improve consumer infrastructure and enhance the capacity of service providers. The Ministry of Finance will provide a 90% subsidy for the interest rate reduction, while provincial governments will provide a 10% subsidy.
The policy also specifies that the maximum amount of subsidized loan is ¥100,000 per household. The loan funds can be used for fixed assets and working capital to improve consumer infrastructure and enhance service provision capacity.
Interest Rate Reduction by 1%
The policy aims to stimulate consumption by providing financial support to service industry enterprises. The Ministry of Finance believes that increasing demand will help drive economic growth and improve the quality of life for consumers.
Businesses Enjoy Reduced Interest Rates
The policy simplifies the loan application process, allowing service industry enterprises to apply for loans through a standardized procedure. The financial support will be provided in a timely manner, and businesses that meet the criteria will enjoy reduced interest rates.
The policy also emphasizes the importance of monitoring and supervising the use of loan funds to ensure that they are used correctly and efficiently. Any misuse or misappropriation of loan funds will be subject to punishment according to law.
Cover image source: Liu Guomei, Daily Economic News