Hebei: Shijiazhuang allocated 8mln yuan special funds to boost technology commercialization

2012/10/29

Shijiazhuang government has decided to arrange a special fund as risk compensation for technology commercialization.

The first eight million yuan worth of fund will come from the municipal financial budget, and the amount will be subject to annual change. Industry insiders commented that the fund will not only stimulate the enthusiasm of local companies to accelerate the commercialization of their technological achievements, but also dispel the concerns of banks challenged by loan losses.

To ensure the standard operation of the fund, the government has formulated interim measures on managing the fund which is designed to compensate the loan losses of banks lending money to small and medium-sized companies for their technology commercialization.

According to the measures, the fund will support at most 70% of the loan losses as well as interest losses thereby, and the banks will bear the other 30% losses. The legal representatives of the projects should bear the economic responsibility for bank loans.

The measures also stipulate that the projects which get bank loans should own indigenous intellectual properties and should have considerable prospective economic and social benefits.

SMEs who apply for the credit loans should have been registered in local authorities, and should have independent legal personality, clear property rights, sound financial management system. Besides, their debt rate should not be higher than 50%.

The implementation cycle of the loan project, in principle, should not be more than two years. In addition, the credit loan rendered to each project should be limited to less than three million yuan.

(Source: China IPR)