(CFP Photo)

Jiangsu Province has set up special loans of 10 billion yuan to help small and medium-sized enterprises (SMEs) enhance production capacity and efficiency, with the first such loan of 10 million yuan granted to Nanjing Haitian Rail Vehicles and Equipment Ltd by the Bank of Jiangsu on February 10.

Mainly engaged in the production and manufacture of interior parts for high-speed trains, the company now faces cash squeeze due to fluctuations in commodity prices, higher labor costs, payment delay and other factors. It took the Bank of Jiangsu two working days to grant the loan with an interest subsidy of 100,000 yuan.

The provincial government introduced a number of measures to boost economic recovery and growth, including the special loans to reduce the financing cost of SMEs. The targeted businesses are those registered before 2021 and hit hard by the pandemic, mainly in industries of manufacturing, transportation, wholesale, retail, accommodation, catering, culture, sports and tourism.

The maximum loan amount for one business is 10 million yuan along with the interest subsidy. The participating banks include the Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Jiangsu, Bank of Nanjing, Bank of Suzhou and other banks in the province.

In addition, the People's Bank of China Nanjing Branch, Jiangsu Banking and Insurance Regulatory Department and the Jiangsu Local Financial Regulation and Supervision Department also encourage and supervise the services of financial institutions in this program.