The State-owned Cultural Assets Administration Center (SOCAAC) of Beijing Municipality has recently completed the 2022 "Investment and Loan Award" project review, and issued nearly 140 million yuan ($ 20.06 million) in support funds to 666 cultural enterprises and financial institutions.

According to the survey conducted by SOCAAC, 85.7 percent of cultural enterprises this year were affected by the pandemic, insufficient capital liquidity and financing needs. About 62.9 percent of companies believe that the current financing cost is too high, and loans will cause the enterprise to be more rigid.

As an innovative measure for the capital to promote cultural and financial integration, the "investment and loan award" is an important support policy to support the growth of cultural enterprises. It subsidizes the cost of corporate financing.

On the one hand, it gives a higher proportion of support for credit loans and intangible asset mortgages issued by banks, rewards the guarantee company, and promotes the support company to increase support for cultural enterprises. On the other hand, the proportion of funding support for equity financing promotes the development of equity financing of cultural enterprises, increases the proportion of funds in enterprises in core areas, and alleviates structural imbalances.

The survey also showed that the proportion of enterprises with insufficient liquidity in the "investment and loan award" funds had reached 68.5 percent.

Since its implementation in 2017, the award has issued a total of over 2.1 billion yuan in funds, and nearly 4,000 cultural enterprises and more than 230 financial institutions have benefited, reducing the financing cost of cultural enterprises exceeding 30 percent.

In addition, in order to further help relieve burdens of enterprises, in response to the difficulty of financing of cultural enterprises, the SOCAAC jointly promoted relevant units to launch the "Beijing Cultural Industry Aid Policy List", which brings together 2 municipal policies and 10 district -level policies. With a number of financial institutions, the "Beijing Cultural Industry Aid for the Saves of the Enterprise "financial products has brought together 44 cultural and financial products.

(Copywriter: Wang Liyan)