Shanghai relaxes loan policies for business start-ups

Apr. 7, 2009 (China Knowledge) - Shanghai human resources and social security bureau unveiled a new policy last week, which allows local residents under 35 to apply for a government-guaranteed one-year loan of up to RMB 100,000 if they can provide a feasible business plan.

The move is part of the municipal government's efforts to provide support to start-up businesses in the city. 

The government also extended the scope of start-up loans to any business run by Shanghai native for less than three years, compared with the criteria of businesses under one year only.
 
In addition, graduates from any Shanghai university and taking degree less than two years can apply for government-guaranteed business-starting loans, even if they do not have residence permits.

The new policy has taken effect from Apr. 1.

Last year, 7.4% of the population within the working age in Shanghai had their own businesses.