Nantong God-of-Horses Thread in Rugao, Nantong, Jiangsu province. [Photo/Nantong God-of-Horses Thread]

On Sept 9, Rugao successfully completed its first equipment-secured loan. The loan, amounting to 1.4 million yuan ($196.63 million), was granted to Nantong God-of-Horses Thread through a partnership between the Nantong branch of Jiangsu Credits Re-Guarantee Group and Rugao Rural Commercial Bank. The company has been approved for a total credit line of 8.4 million yuan.

The equipment-secured loan initiative is introduced by the Jiangsu provincial departments of finance, science and technology, industry and information technology, among others. It aims to provide financial support to the province's micro, small, and medium-sized enterprises, encouraging them to upgrade, purchase, or modify their production equipment.

The policy guarantees up to 50 million yuan per company, covering up to 70 percent of their total equipment investment. In addition, enterprises receive an 80 percent subsidy on guarantee fees from the provincial government without needing to apply, helping companies secure the funds they need for equipment upgrades.

Nantong God-of-Horses Thread, a manufacturer of various thread types such as polyester embroidery and high-strength threads, plans to purchase new production lines to meet the demands of product upgrades and market expansion.