Shanghai's Putuo district unveils measures to support financing for SMEs

​Putuo district in Shanghai has recently unveiled measures aimed at bolstering financial support for small and medium-sized enterprises and promoting the high-quality growth of the real economy.

According to the newly released policy document, businesses legally set up in Putuo district, with a minimum operational period of one year, sound financial management systems, and good credit records, are eligible to benefit from the policies.

A special financing quota of 10 billion yuan ($1.4 billion) has been established for such purposes, according to the document.

From Aug 1, 2025, to July 31, 2026, local financial institutions are encouraged to issue new RMB loans (including rollover loans without repayment of principal) to qualified enterprises in the district for their daily operational needs (excluding personal loans). These loans should have a maturity period not exceeding one year.

Each individual enterprise can access financing up to a total amount of 50 million yuan (with related enterprises included). If the total limit is reached, the quota can be replenished after repayment of principal and interest.

The interest rate for these loans will be at least 30 basis points lower than the most recently published one-year Loan Prime Rate. Upon repayment of principal and interest at maturity, the district's finance bureau will provide a 20 percent interest subsidy based on the actual loan interest rate (for loans with a term of less than a year or early repayment, the subsidy is calculated based on the actual borrowing period).

For high-tech enterprises, city-level or district-level technology giants, and companies registered as technology-based SMEs, the interest subsidy rate can be raised to 30 percent upon verification. Companies that have already benefited from financial subsidies at the city or district level will not be eligible for this additional support.

These measures are designed to facilitate access to financing for SMEs and promote the growth and innovation of technology-oriented enterprises in Putuo, ultimately contributing to the overall economic development and sustainability of the district.