In order to fully promote rural revitalization and increase financial support for small and micro enterprises and new agricultural business entities in rural areas, the People's Bank of China, together with the Ministry of Agriculture and Rural Affairs and other departments, issued the "Guiding Opinions on Strengthening Financial Services to Support the Development of Small and Micro Enterprises in Rural Areas". The policy clearly encourages financial institutions to set aside separate agricultural credit plans to ensure that the growth rate of loans to rural small and micro enterprises is not lower than the average growth rate of all loans. At the same time, the "agricultural industry chain + supply chain finance" model is innovated, relying on core agricultural enterprises to provide upstream and downstream small and micro enterprises with diversified financing services such as accounts receivable pledge and inventory pledge.
In response to the pain point of insufficient collateral in rural areas, policy supports local governments, financial institutions, and insurance companies to cooperate and launch a "government-bank-insurance" risk-sharing mechanism. For example, in a pilot area, the government established a risk compensation fund, the bank increased the loan limit by a certain proportion, and the insurance company provided guarantee insurance for the loans, with the three parties sharing the loan risk. In addition, to reduce the financing cost for small and micro enterprises in rural areas, the policy requires financial institutions to offer interest rate discounts on eligible agricultural loans and carry out a "first-time borrower" cultivation action for new agricultural business entities, simplify the approval process, and improve the availability of loans. This policy injects financial vitality into the rural economy through multi-dimensional support, and helps to promote the industrialization and upgrading of agriculture and the revitalization of rural industries.