Hohhot city in North China's Inner Mongolia autonomous region recently issued a new policy called Guidelines for Handling of Guaranteed Loans for Entrepreneurship in Hohhot in 2021, in order to better support entrepreneurship and employment, according to the Hohhot Employment Service Center.

The new policy reportedly expands the scope of financial support and extends the personal loan period to three years.

The entrepreneurial secured loan support will be given to individuals, partnerships, or organizations in Hohhot that start businesses with insufficient funds. It will cover a range of groups, including urban registered unemployed people, those experiencing difficulties finding employment, as well as college graduates, migrant workers returning to their hometowns to start a business and online merchants.

Small and micro-sized enterprises that have newly recruited 15 percent of their existing employees – and which meet the loan conditions (or 8 percent for enterprises with more than 100 employees) and have signed labor contracts for more than one year – will be given business guarantee loan supports.

Other requirements for the entrepreneurial secured loan are that small and micro-sized enterprises need to have no credit records of serious violations of laws and regulations, such as arrears of wages and social insurance premiums.

In terms of the loan quota and loan period, for a personal entrepreneurial secured loan, the loan period has been adjusted from a maximum of two years to a maximum of three years.

For college graduates who start a business in Hohhot within five years of graduation, a guaranteed loan of up to 500,000 yuan ($76,900) will be issued.

The maximum amount for a single business secured loan issued to other eligible individuals is 200,000 yuan.