The applicable objects of due diligence exemption are expanded, and the scope of loan renewal is expanded… Financing for small, medium and micro enterprises will be smoother

In recent years, the government has rolled out several measures aimed at enhancing support for businesses. This year, various departments within the financial sector have strengthened their coordination efforts to improve financing services for small and micro enterprises, with a specific focus on eliminating bottlenecks in their access to funding.

Recently, the Financial Regulatory Bureau issued new guidelines to address these financing challenges. These guidelines broaden the scope of due diligence exemptions to include small and micro enterprises, sole proprietorships, small business owners, and farmers. This move aims to relieve pressure on local credit staff, allowing them to lend more confidently and enthusiastically.

Additionally, the range of loan renewals has expanded from select small and micro enterprises to all such businesses. It has been made clear that small business loans for working capital, as well as operational loans for small business owners, sole proprietorships, and farmers, can be renewed upon maturity if there is ongoing funding need.

To further bolster support for small and micro businesses, interdepartmental coordination has intensified among national ministries and local governments. Recently, a collaborative mechanism was established between the Financial Regulatory Bureau and the National Development and Reform Commission specifically aimed at supporting financing for small enterprises. At the county level, special task forces have been created to thoroughly assess the financing needs of small and micro businesses. For those with legitimate funding requirements and good credit ratings, banks are expected to complete credit approvals within a month to ensure that financial resources reach these enterprises directly.

According to recent statistics, by the end of August this year, the total outstanding loans for inclusive small and micro enterprises reached 31.9 trillion yuan, marking a fourfold increase since the end of 2017. The average interest rate for these loans has also seen a cumulative reduction of 3.5 percentage points. By the end of September, six major commercial banks—including ICBC, ABC, BOC, CCB, Bank of Communications, and Postal Savings Bank—had provided over 2.2 trillion yuan in new inclusive loans for small and micro businesses this year alone.