On March 10, Yichang WTAU Electronic Equipment Co., Ltd. (WTAU), Hua Run Technology Co., Ltd. and other 7 small and medium-sized enterprises signed a bond insurance loan and security agreement with Hubei Sanxia Rural Commercial Bank Co., Ltd. and PICC Property & Casualty Co, Ltd. (PICC). which issued a loan of 3 million RMB to each enterprise. This is the first bond insurance loan successfully issued in Yichang.

　　Nie Daojing, General Manager of WTAU, said: “The loan was issued in less than half month, totally out of my expectation.” She also mentioned that the loan was absolutely a timely help for them, as they were busy building labs and bringing in research and development talents, badly in need of money. It was last week that WTAU applied for a loan. WTAU’s application material has been audited and jointly guaranteed by government of Yichang High-tech District and PICC, and then those two parties recommended WATU to Sanxia Rural Commercial Bank, which issued the loan.

　　Just like WTAU, there are a group of small and medium-sized enterprises with great potential in science and technology. However, they have trouble in applying loans as they do possess secured property. Yang Meiren, Head of the Management Committee in the High-tech District, said: “it is like a good seed. The seed just sprouts but lacks strength to break through the soil.” According to Yang, the bond insurance loan can provide the small and medium-sized enterprises the strength they need.

　　At the end of last year, the government of Yichang High-tech District signed a bond insurance loan and security agreement for small and medium-sized enterprises with Hubei Sanxia Rural Commercial Bank Co., Ltd. and PICC Property & Casualty Co, Ltd. (PICC). They proposed some regulations on bond insurance loan for the enterprises, which built an cooperative model that three sides, including government, insurance company and bank, would share the responsibility for credit risk. This model will solve the financing problem for small and medium-sized, technology-oriented, ecology-oriented and potential enterprises in the district. The time limit of bond insurance loan is generally within a year, and the loan will not exceed 3 million RMB and the financing cost is just about 7%.

　　According to Zou Jiayong, President of Sanxia Rural Commercial Bank, “the newly low-cost financing model has built a win-win platform among the government, insurance companies, enterprises and banks.” Three 300 million RMB will be issued to help 100 promising small and medium-sized enterprises in the district to develop under this model. (Reporter Liu Zirong, correspondent Chen Xiaojun)