Shanghai Cultural Development Foundation Management Regulations of Supporting
Loans for Cultural Projects
Chapter One General Principle
Article 1: To strengthen the management of Shanghai Cultural Development
Foundation (hereinafter referred to as SHCDF) supporting loans for cultural
projects, SHCDF has established the Management Regulations in accordance with
Management Method for Foundations of the State Department, the Charter of SHCDF,
the Funds Management method of SHCDF, and laws such as¡°General Rules of Loan
(trial)¡±and¡°Law of Guarantee¡±.
Article 2: The mission of SHCDF supporting loans for cultural projects is: to
use modern financial methods and tools, to boost cultural innovation, to support
cultural projects, to use funds for cultural development efficiently, so as to
promote the prosperity and development of Shanghai cultural undertakings.
Article 3: The operating mechanism of supporting loans is: reasonable, legal,
open and transparent.
Chapter Two The Scope of Supporting Loans
Article 4: Any insufficiently funded project in accordance with Shanghai
cultural development orientation, and having market potential and debt-paying
ability is qualified for applying the supporting loans. Such projects include
compositions, performances, productions, publications, exhibitions, and
activities in fields like literature, film and TV, drama, traditional opera,
music and dance, acrobatics, the fine arts, calligraphy, photography and
juvenile literature and arts, etc.
Article 5: The following are eligible to apply for the loans from SHCDF:
(1) Citizens with registered permanent residence status in Shanghai;
(2) Citizens from other provinces of China with residence permit in Shanghai£»
(3) Foreigners working in Shanghai with permanent residence permit; and
(4) Legal persons or other organizations registered in Shanghai
Chapter Three Forms of Supporting Loans
Article 6: The supporting loans for cultural projects consist of two major
forms: consignment loan and pledged loan.
Article 7: SHCDF adopts different types of loans to support cultural projects
according to the evaluation on social benefits of the projects as follows:
(1) Consignment loan + 100% interest subsidy by SHCDF
(2) Consignment loan + partial interest subsidy by SHCDF (25%, 50%, 75%)
(3) Consignment loan + the total interest by the party supported
(4) Pledged loan + 100% interest subsidy by SHCDF
(5) Pledged loan + partial interest subsidy by SHCDF (25%, 50%, 75%)
(6) Pledged loan + the total interest by the party supported
Article 8: The performance of SHCDF¡¯s supporting loans on cultural projects
follows the basic principles hereinafter:
(1) To individual applicants, SHCDF usually supports in the form of pledged
(2) To legal persons or other organizations, whose cultural projects have
certain social benefits and can adapt market operation, SHCDF usually supports
in the form of pledged loan,
(3) To other cultural projects, SHCDF usually supports in the form of
Chapter Four Application, Examination and Evaluation
Article 9: Projects applying for supporting loans shall be in accordance with
cultural development orientation of Shanghai and the Charter of SHCDF.
Article 10: The applicants shall submit¡°The Application Form of Supporting
Loans for Cultural Projects¡±. SHCDF office will affirm the qualification of the
Article 11: After the qualification affirmance, accounting firm and
commercial bank will be consigned to examine, evaluate and audit the applying
Article 12: The accounting firm is in charge of analyzing the feasibility of
the applying projects, auditing the project budgets and the budget for revenue
and expenditure, putting forward the feasibility report by evaluating the market
prospect, economic benefits and social benefits.
Article 13: Commercial Bank will make an independent credit evaluation on the
applying projects passed the qualification affirmance and by risk analysis, put
forward a preliminary plan of supporting loans for cultural projects in the form
of an Independent Censor Opinion Paper.
Chapter Five Project Verification and Loan Granting
Article 14: According to the independent examination report by intermediary
agencies such as accounting firms and commercial banks, SHCDF will make
suggestions to the Examination and Approval Committee of SHCDF for examination
Article 15: Provided that the projects have passed the examination of the
Examination and Approval Committee, SHCDF office will inform the applicants and
commercial bank in written form.
Article 16: By right of the written notice the loan-takers can draw the
related loan vouchers and contract text from commercial bank, process the
consignment or guarantee procedure with SHCDF and make loan application to
commercial bank by providing related materials.
Article 17: The loan-takers shall prepare the materials to the loan granting
in accordance with the requirements of commercial bank and in the meanwhile sign
the loan agreement with commercial bank.
Article 18: Commercial bank will take charge of granting loans to the
Chapter Six Repayment for the Principal and Interest of
Article 19: The loan-takers shall pay commercial bank due-to-pay interest
according to the stated date and way of charging interest appointed in the
supporting loan agreement.
Article 20: The loan-takers should, according to the bilateral appointment
between loan-takers and SHCDF, submit the interest payment application on the
projects that enjoy SHCDF interest subsidy. SHCDF will remit the certain sum of
money from SHCDF specialized interest account to the settlement account opened
by the applicants.
Article 21: Commercial bank will deliver written notices to the loan-takers
one month before the appointed supporting loans repayment date and the
applicants shall finish the repayment procedure in terms of the regulations.
Chapter Seven Projects Supervision and Special Disposal
Article 22: During the implement of the supporting loan project, commercial
bank will control the account of the loan-takers to supervise the loan-takers to
use the money according to the loans supporting projects implement schedule and
effectively control the real direction of investment of the principal.
Article 23: The loan-takers shall submit¡°Management Report of the Projects on
Supporting Loans¡±to SHCDF on time.
Article 24: For those loan-takers who breach the agreement, resort to
deception, or embezzle the funds, SHCDF, depending on how serious the case is,
will take such measures as postponing, stopping or calling back part or all of
the funds. For those very serious cases, the loan-takers will be investigated
Article 25: If the supporting loans for cultural projects cannot be repaid or
become lost loans, the projects will be processed by special disposal clause
procedure after the examination and approval by the Examination and Approval
Committee of SHCDF.
Chapter Eight Case-Ending
Article 26:After the liquidation of the supporting loans, SHCDF office will
accomplish the final report of the supporting loan project.
Article 27: If the supporting loans cannot be repaid or becomes the lost
loans, SHCDF office will have a settlement audit of the projects and report it
to the Examination and Approval Committee for examination and approval to be
transferred to special disposal clause process.
Chapter Nine Appendix
Article 28:SHCDF office is entitled to the right of interpretation of the
Article 29:The method will be put into practice on a trial basis from Oct 1,