Credit Pricing for Financing of Small and Micro Enterprises Under Government Credit Enhancement : Leverage Effect or Credit Constraint Effect

The pricing of financing credit for SMEs under government credit enhancement is an important pattern to solve the financing difficulties of SMEs. Using the data of SMEs credit guarantee fund from Wenzhou, this paper studies the cost of credit under government credit enhancement from three dimensions: credit in different periods, category of credit granting enterprises, and factors affecting the pricing of credit. In the pricing process of credit insurance loans to SMES, the leverage effect is dominant. However, from the third quarter of 2019, credit pricing process shows the credit constraint effect. this paper found that the leverage effect mainly occurs in the loan of non-high-tech and non-entrepreneurial enterprises, and the credit constraint effect is dominant in the loan of high-tech enterprises and entrepreneurial enterprises. Especially for high-tech enterprises, the elements of interest rate premium, the statistically significant difference is the amount and term