Shanghai plans to loosen restrictions on subsidies for smaller animation and video game companies in order to prop up the struggling segment of the industry, an official from the local culture and media authority announced Thursday at an industry conference.

Smaller animation and video game companies have been struggling in recent years due to their lack of access to credit and other financing. The local government hopes that helping more companies qualify for subsidies will give the industries a boost.

"We decided to lower the threshold for the subsidy so that more small companies can benefit from the policy," said Bei Zhaojian, deputy director of the Shanghai Municipal Administration for Culture, Radio, Film and Television.

Bei announced a series of new measures Thursday at the Chinese International Cartoon and Games Exposition in Pudong New Area, including increasing the maximum subsidy for locally produced animation from 600 yuan ($94.12) to 800 yuan per episode, though he didn't reveal when the measures would take effect.

The city is already spending  about 10 million yuan a year on subsidies for the animation and game industries, said Cheng Xiqing, the agency's press officer.

However, because one way to hand out the subsidy is to cover part of the interest payment, many smaller firms may be left out, even with the lower threshold.

Local animation studios in particular lack access to financing, according to a report that the agency released Thursday. The Shanghai Animation Industry Annual Report 2011 found that 90 percent of the roughly 300 animation studios that are privately owned with fewer than 400 employees have trouble qualifying for loans.

"Since we opened in 2007, we have never been able to obtain a bank loan," said Yan Hua, the general manager of a local animation design company.

Yan appreciates the subsidy, but said it was not enough.

A single animated episode costs from 80,000 yuan to 100,000 yuan to produce, according to an industry insider.