Ant Group-backed digital lender MYBank is one of more than twenty banks taking part in a joint campaign to expand lending to small businesses to support Chinese employment levels in the wake of the COVID-19 pandemic.
The All-China Federation of Industry and Commerce (ACFIC) recently launched the the “Stabilise Employment, Revitalise Rural Villages, Boost Tech Ventures” (稳就业、振乡村、兴科创) micro-business support plan, outlining an annual target of 10 billion yuan in special discounted loans to micro and small-enterprises to help them continue operation and support employment levels.
China is currently host to over 44 million micro and small-enterprises as well as 95 million individual industrial and commercial proprietorships, with Chinese banks currently under pressure from Beijing to step up lending to them as part of post-COVID financial inclusion measures.
Research from the Chinese Academy of Labour and Social Security (CALSS) indicates that every 100,000 yuan increase in investment in China translates into roughly 1.116 new jobs.
ACFIC announced on 26 August that in less than a month since the unveiling of the campaign lead participant MYBank had worked with more than 20 other lenders to launch the first round of employment support measures, including Ping An Bank, Chongqing Rural Commercial Bank and the Agricultural Development Bank.
Under the plan any micro-and-small enterprises that have steady or rising staff numbers can use the Alipay app to apply for 30 day interest-free loan vouchers and other forms of specialised support, simply by providing screenshots or other forms of proof of payment to staff.