The borrower needs to be the actual controller of the enterprise: a natural person who can actually dominate and control the operation and management behavior of the enterprise, which generally refers to the individual shareholders who hold more than 50% (inclusive) of the shares/equity capital of the enterprise; or a single largest shareholding shareholder although the shareholding ratio is less than 50%; or does not meet the first two conditions, but there is a resolution of the shareholders' meeting and a written certificate issued by the representative of the legal person, proving that he is the actual controller of the enterprise. Proof that he or she is the actual controller of the enterprise, of which the number of signatures of the shareholders' meeting resolution accounts for no less than 2/3 of the total number of shareholders, and meets the proportion required by the articles of association of the company for the right to make decisions on major matters. Public officials and minor shareholders who are prohibited from doing business by laws and regulations are not allowed to apply for small and microenterprise loans from the Bank.
Borrowers/actual controllers of borrowing enterprises must meet the following conditions:
1. Citizens of the People's Republic of China*** and the State of China with full capacity for civil behavior.
2. Have legal and valid identification, age plus credit/single loan term shall not exceed 60 years old in principle, and the maximum shall not exceed 70 years old.
3. Possessing the ability to repay the principal and interest of the loan on time, complying with the law, being honest and trustworthy, without any violation of the law, and not currently involved in any criminal cases or civil cases against them.
4. The borrower/actual controller of the borrowing enterprise should have more than 3 years (inclusive) of continuous and successful business experience in the industry corresponding to the purpose of the loan, which can be relaxed to 2 years if any of the following conditions are met:
1) Small and micro-enterprise mortgage loan secured by a full amount of property.
2) Non-full MSME mortgages secured by additional professional guarantee companies' joint and several guarantees, natural persons' joint and several guarantees or natural persons' joint guarantees.
3)Matching loans for MSMEs where the guarantee is in the form of a joint and several guarantee by a professional guarantee company, a joint and several guarantee by a natural person, or a joint and several guarantee by a natural person.
5. The credit history of the borrower/actual controller of the borrowing enterprise should be at least Level 3 (inclusive), and no credit history is regarded as Level 2 credit history.
6. In the case of personal business loans, the borrower shall be one of the top three shareholders of the borrower's business entity with a shareholding of 10% or more (inclusive), or the borrower shall be the actual controller of the enterprise. To engage in legal production and operation, but in accordance with current policy regulations do not need to apply for a business license for natural persons, such as farmers, fishermen and other legal business and can provide proof of legal operation of natural persons can also apply for personal business loans.
7. In the public loans for small and micro enterprises, the actual controller of the borrowing enterprise shall provide full irrevocable joint and several liability guarantee for the loan.
The borrower's business entity/borrowing enterprise must meet the following conditions:
1. The borrower's business entity/borrowing enterprise has a stable profit model and stable cash flow.
2. The borrower's business entity/borrowing enterprise has no adverse business behavior or practice record.
3. The location of the Borrower's business entity/borrowing enterprise must be in the same city administrative jurisdiction as the Loan Agency and within the effective management radius of the Loan Agency. The following conditions may be waived:
1) For micro and small enterprise loans secured by a full amount of real estate, the location of the borrower's business entity/borrowing enterprise must be located in the same urban administrative jurisdiction as that of the loan processing institution or within a two-hour car ride of the loan processing institution.
2) For Micro and Small Enterprise Supply and Marketing Flow Loan, the borrower's business entity/borrower's business location must be located in the same province of the operating agency or within a 2-hour car ride of the operating agency.
4. Small and microenterprise supply and distribution traffic loan borrower enterprises must also meet the following conditions:
1) must have legal qualifications, holding a valid business license, has applied for a loan card and has been the annual review.
2)The borrowing enterprise has a good reputation, and the loan card at the time of loan application shows that the enterprise has no current non-performing loans and no illegal behaviors (including but not limited to administrative penalties for industry and commerce, taxation, and price, etc.). Late payment or interest arrears caused by non-subjective reasons of the enterprise such as incorrect data reporting by the bank, delayed data update, etc. may not be counted in the record of non-performing loans if written proof can be provided.
Loan usage regulations:
Loans can only be used for working capital turnover or fixed assets investment of the borrower's business entity/borrowing enterprise.
(a) Fixed asset input loans can only be used by the borrower's business entity/borrowing enterprise for new construction, expansion, remodeling, development, acquisition and other fixed asset input purposes. Public loans for MSMEs used for fixed asset inputs shall comply with the relevant regulations of the regulatory authorities on fixed asset loans.
(2) The loans shall not be used for investment in enterprise equity; they shall not be entered into the market of stocks, futures and other securities; they shall not be used for the purchase of housing; they shall not be used for real estate development in disguise; they shall not be used for borrowing and lending to make illegal incomes; they shall not be used in other fields of production and operation prohibited by the State; and they shall not be used in the fields in which the bank's loans are prohibited by the State's laws, regulations and regulatory authorities.
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