| Small loans help tiny businesses to develop |
SHANGHAI, Jun 15 -- THE Shanghai Labor and Social Security Bureau yesterday granted interest-free, business start-up loans to five small businessmen, the first entrepreneurs to benefit from the program, which was launched in April.
Under the plan, entrepreneurs can receive interest-free loans ranging from 3,000 yuan (US$386) to 8,000 yuan for up to 18 months in order to start small businesses in their communities.
"They just have to repay the amount borrowed from the bank before deadline, which means this is a government-guaranteed no-interest loan," said Chen Wenjing of the bureau's business-starting guidance center. Kong Aiqun received a loan yesterday to open a shop selling his own handicrafts.
"Though the amount is small, it should be enough for me to buy materials such as cotton and silk," Kong said.
In the past, the government only offered preferential loans to large companies.
"Considering community service businesses also contribute to solving the city's unemployment problem, preferential policies should also be given to encourage them to create more jobs," said bureau official Chen.
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