The affluent coastal province of Zhejiang is offering college grads generous start-up loans, amidst a broader push from China’s financial authorities for greater support for small businesses and private enterprise.
The Zhejiang province government said college graduates will soon be able to access start-up loans of up to 500,000 yuan (approx. USD$78,900), during a press conference held by the National Development and Reform Commission (NDRC) on 17 February.
The provincial government will help to pay over 80% of the loans if the start-ups go belly up, and 100% if the loan is under 100,000 yuan.
Should college graduates choose to rise and work in Zhejiang, the provincial government will also provide them with living allowing and housing subsidies of between 20,000 to 400,000 yuan.
The new policy arrives following a push for greater financial inclusion in China, as well as the flooding of the Chinese employment market with fresh college graduates, whose numbers are expected to hit a record 10.76 million this year.
The NDRC announced last week that the Chinese central government will provide incentives to small businesses that employ new college graduates, as well as special assistance for young entrepreneurs.