Policy interpretation

I. What is the purpose of this policy?

A: In order to promote financial innovation, enrich the financing channels of technology small and medium enterprises (SMEs) and raise the financing efficiency of the enterprises with good credit standing, the Zhongguancun Science Park launched the pilot program of credit loans to provide unsecured credit loan service for eligible technology enterprises.

II. What measures have been taken to promote the policy?

(I) A joint working group formed by the Business Management Department of the People's Bank of China, Beijing Banking Regulatory Commission and the Administrative Committee of Zhongguancun Science Park was set up.

(II) Bank of Beijing, Bank of Communications, Beijing Rural Commercial Bank, Shanghai Pudong Development Bank, Bank of China, China Merchants Bank, China Development Bank and Standard Chartered Bank are chosen as pilot cooperative banks to provide credit loans to technology small and medium enterprises.

(III) Administrative Measures for the Fund Supporting the Credit Loans to Technology Small and Medium Enterprises in Zhongguancun Science Park was formulated.

III. Which enterprises are qualified to participate in the pilot program?

The enterprises meeting one of the following conditions are qualified to apply the credit loans for the pilot program:

(I) One of the 100 innovation pilot enterprises in Zhongguancun;

(II) High-tech enterprises in Zhongguancun, of which the annual income is no more than 200 million yuan with a credit rating rate of BB- or above.

IV. What supportive policies does Zhongguancun provide?

(I) Zhongguancun requires each pilot bank set an upward floating standard on the basis of the benchmark bank loan interest rate according to its risk control and tolerance ability, but the extent of the upward floating shall not exceed 30 percent of the benchmark interest rate.

(II) The Administrative Committee of the Zhongguancun Science Park provides loan interest subsidy at a specific ratio to the benchmark bank loan interest rate for the pilot enterprises which have repaid principal and paid interest of loans with a term of more than three months. The interest subsidy ratio has the following correspondence with the "level of star" of the enterprise:

The subsidy interest ratio of star-1 enterprises is 20 percent (the enterprises that apply for loans the first time are subject to the interest subsidy standard of star-1 enterprises), that of star-2 enterprises is 25 percent, that of star-3 enterprises is 30 percent, that of star-4 enterprises is 35 percent and that of star-5 enterprises and 100 innovation pilot enterprises is 40 percent. The enterprise star-rating standard shall be executed in reference to the Interim Administrative Measures for the "Gazelle Program" - Enterprise Star Rating.

The annual interest subsidy to a single enterprise shall not exceed 600,000 yuan.