The government-backed special loan project for private, small, and micro enterprises in Zhanjiang was launched on Oct 27.

Small and micro enterprises, individual businesses, as well as owners of small and micro enterprises are the targets of this special loan project, with loans of up to 10 million yuan ($1.49 million) available for eligible applicants.

Government financing guarantee agencies and government risk compensation funds will share the risks for banks, covering the non-performing loans of banks within the normal market level in the process of issuing small loans.

The guarantee rate of this special loan is 0.5 percent in the first year and will be reduced to 0.25 percent in the second year.

The guarantee rate of this special loan will be cut to 0.1 percent for small and micro businesses to settle in the city before the end of 2020.

The small amount guaranteed loan, which is less than 1 million yuan, of a small enterprise or a micro enterprise shall be exempted from guarantee fees. The total amount of loans shall not exceed 50 million yuan.

The special loan project is the first cooperation project among the government, banks, and financing guarantee agencies. It will further improve financial services for private, small, and micro enterprises, as well as make contributions to the city's efforts to transform into a provincial sub-center city and develop a modern coastal economic belt.