Lately, four departments, including the Ministry of Finance ("MOF"), have jointly distributed the Circular on Further Working Effectively on Monitoring and Analyzing Policies on Startup Guaranteed Loans and Interest Subsidies (the "Circular").
The Circular outlines arrangements in different aspects, including "elevating the level of targeted management of startup guaranteed loans", "establishing a sound credit data reporting mechanism", "strengthening after-loan management of startup guaranteed loans" and "improving the assignment of tasks and the collaboration". The Circular states that, all administering banks shall intensify the credit-loan business management of guaranteed loans they offer to startups, expediate their internal procedures with dependence on their respective existing credit-loan management system, and complete two tasks by the end of February 2019. One is to define the "startup guaranteed loans" out of the types of existing lending business targeted at individuals and small- and micro-sized businesses, and the other is to divide individuals that apply for guaranteed loans to start businesses, into ten categories of borrowers. Furthermore, the Circular requires that, each administering bank shall submit prompt, complete and accurate information about startup guaranteed loans it has offered, into the basic financial credit information database.