(Yicai Global) March 23 -- The Shanghai government and China Construction Bank are dishing out loans worth CNY10 billion (USD1.4 billion) in a bid to help culture and tourism companies resume business after shutting down because of Covid-19.

Some 162 companies in the sector need about CNY2.7 billion in loans, mostly to pay staff and rent, Wu Qiong, director of the Shanghai Municipal Administration of Culture and Tourism's industry department, said yesterday. These will be the first to get their hands on the funds and the bank already knows who they are, he added, saying they include travel agencies, animation and television studios and cultural and creative parks.

China Construction Bank will open up a green channel to prioritize these firms and hopes to respond to their applications within 24 hours, a source at the lender's Shanghai office said.

More than 90 percent of the culture and tourism firms in Shanghai are small- and medium-sized enterprises that struggle with cash flow and are in dire straits because of the pandemic, according to the administration. The government hopes it can alleviate some of the trouble at the companies, which largely include travel agencies, hotels, public attractions and talent agencies.

Editor: James Boynton