By the end of 2023, Beijing Economic-Technological Development Area (Beijing E-Town) had explored the establishment of a loan risk compensation mechanism for small enterprises and issued the Management Measures for Risk Compensation Funds for Small Enterprise Loans in Beijing Economic-Technological Development Area (hereinafter referred to as Measures) ahead of the city. Currently, there is a fund of 15 million yuan ($2.06 million) in place, and the total scale is expected to reach 100 million yuan.

The Measures have set up a "risk compensation fund" by investing in cooperation with banks to address non-performing loan projects of small enterprises within these banking institutions. It provides risk compensation of 30 to 40 percent of the principal balance of non-performing loan projects, in order to reduce the financing costs for enterprises, promote funds towards more innovative and growth potential enterprises or projects, and achieve high-quality development of the substantial economy.

By the end of December 2024, 18 banking institutions in the area had filed risk compensation projects totaling 2.08 billion yuan, representing a year-on-year increase of 59.45 percent in loan amounts on a comparable basis.

The Measures also directly target the difficulties faced by small enterprises in financing, such as the lack of qualified collateral, pledges or the inability to introduce third-party guarantees, aiming to channel financial support directly to these enterprises. It includes credit loans, intellectual property pledge loans and accounts receivable pledge loans in the supported scope, encouraging partner banking institutions to continuously increase the lending efforts to small enterprises within the area.

Beijing E-Town will continue to leverage policy dividends, actively explore financial service innovations and collaborate with State-owned major banks to establish risk compensation special funds. This initiative aims to continuously optimize the business environment through high-quality financial supply.