China will make financing easier for migrant workers and veterans who return to their rural homes and start businesses, a senior official said.
Zhang Yizhen, vice-minister of human resources and social security, made the remark during a news briefing on Jan 19 on an upcoming guideline of policy incentives for migrant workers, college students and veterans who choose to start businesses in rural regions. It was approved at the State Council’s executive meeting chaired by Premier Li Keqiang on Jan 17.
Zhang said State-owned commercial banks will direct their subbranches to approve credit for those who return to start businesses. Also, the financing model covering government, banks and insurance will be extended to rural startups.
The Agriculture Bank of China will put a major emphasis on their inclusive financing in rural areas, Zhang said, and more financial organizations will be encouraged to set up in areas where rural startups have accumulated.
She said the ministry will work to further implement and improve the loan policy for startups, while the credit record system for those who start businesses will be improved.
“In our field research, we noticed that the key problem rural startups face is financing, that is, how and where to get funding. Poor credit records, difficulty in getting financing guarantees and limited financing channels are major difficulties,” she said.
Seven million people had started businesses in rural areas as of September, the Ministry of Agriculture reported.