Central bank doubles loan amounts for small businesses
20 August 2008
China's central bank has increased the maximum amount that can be loaned to small businesses and entrepreneurs to prevent potential unemployment problems, AFP reported. Under the changes, individuals can be loaned up to US$7,300, up from US$3,000 for business purposes, while loans to labor-intensive small businesses have been doubled to US$291,000 from US$145,000. Slower export growth and tightened credit conditions have forced some small businesses to shut down, raising unemployment and concerns about possible social instability.