More than 1,300 start-up projects in Shanghai have obtained 260 million yuan ($39 million) in government-guaranteed loans during the first half of 2016, Pudong Times reported on Aug 16.

These startups are beneficiaries of a government-guaranteed loan policy launched by the city in 2000, aimed at helping startups raise money in their early stages of development.

The program has proved hugely popular with local startups and lending has increased by 71.6 percent year-on-year.

These government-guaranteed loans are one aspect of a series of policies designed to encourage entrepreneurship in Shanghai. The city aims to become a global center for scientific and technological innovation.

Graduates of any Shanghai university who are under the age of 35 and hope to start a business are able to apply for a capped 200,000 yuan guarantee-free loan.

These efforts of local government have encouraged many young people with strong educational backgrounds to become entrepreneurs and take a step closer to their dreams.