Capital Measure

Lai Huigang, founder of Xiaoerjie, a fresh food store chain, thanks a recent government policy for his organization’s expansion in May despite the effects of the novel coronavirus. Xiaoerjie opened three new stores in Jiangmen, a city in Guangdong Province, south China, after receiving a shot in the arm from a state guarantee finance program.

Like other small and medium-sized enterprises (SMEs), Xiaoerjie too had been rattled by the epidemic. Its sales in the city had dropped by 50 percent in the first quarter and some stores had run out of capital. Banks became even more cautious of lending money to SMEs like Xiaoerjie, given their low ability to withstand risk.

However, the Human Resources and Social Security Bureau of Jiangmen launched