DALIAN CHINA  DALIAN CHINA
Policies and Measures for Supporting the SMEs Production and Operation during the Period of Battling against the NCP Outbreak
2020-02-06

In order to thoroughly implement Chinese President Xi Jinping’s instruction of winning the battle against the epidemic with great determination, and earnestly carry out the decisions and deployment on epidemic prevention and control made by the CPC Central Committee and the State Council, meanwhile giving full play to the key role of SMEs in the epidemic prevention and control efforts, we hereby formulated  following policies to ensure the smooth operation and stable development of SMEs.

 

I. Stringent Administration of Operation and Production Resumption

1.Fully supporting and organizing the operation and production resumption of enterprises. All enterprises that ensure city operation, or manufacture materials related to cooperate production, epidemic prevention and control, necessities of people’s life, as well as other enterprises involved in national economy and people's livelihood within the administrative region of Liaoning Province shall maintain normal operation and production. Major projects should resume as soon as possible in line with the time and requirements instructed by the Liaoning Provincial People’s Government so as to balance between the epidemic prevention and control efforts and economic development. (Responsible organizations: all municipal people’s governments of Liaoning Province)

 

2.Ensure the implementation of prevention and control efforts while resuming the operation and production of enterprises. Top priority shall be given to epidemic prevention and control efforts. Enterprise should stick to the principle of “Prepared before returning, returning in an orderly way, and having surveillance regulations in place after returning; as well as to abide by the rule of “Prevention from importing, spreading and exporting infected cases”. Enterprise shall lift the control measures step by step and earnestly carry out the production resumption in an orderly manner so as to ensure a smooth transition and a stepwise recover of production and operation.(Responsible organizations: all municipal people’s governments of Liaoning Province, Health Commission of Liaoning Province)

 

3.Establish an assistance mechanism to help enterprise resume the operation and production during the epidemic. Based on principle of localization administration, difficulties and problems reported through the hotline of 8890 and the Liaoning SMEs Public Service Platform etc. regarding SMEs’ resumption of operation and production shall be timely coordinated and solved by local authorities. A streamlined process and fast examination and approval shall be adopted on issues of significant importance in line with the principle of “treating special issues specially” and “treating urgent issues urgently”. Surplus key medical materials for epidemic prevention and control produced by enterprises shall be purchased and stockpiled by governments. (Responsible organizations: all municipal people’s governments of Liaoning Province, Liaoning Provincial Development and Reform Commission, Liaoning Provincial Industry and Informatization Department, Liaoning Provincial Finance Department, Liaoning Provincial Department of Emergency Management, Health Commission of Liaoning Province and Liaoning Provincial Bureau of Business Environment)

 

II. Scaling up the financial support

4. Grant fiscally subsidized loans to enterprises manufacturing key materials for epidemic prevention and control. Nationally designated key enterprises engaged in epidemic containment seeking for new loans in 2020 will be subsidized by central fiscal authority at 50% of the refinance interest rate of the People's Bank of China, and a further 25% of interest payment subsidy from the provincial finance department, with the above subsidy term not exceeding one year; New loans in 2020 obtained by key enterprises engaged in epidemic containment designated by Liaoning Province shall be granted a 75% of interest subsidy by provincial finance department with term no more than one year based on the refinance rate of the People’s Bank of China, so as to ensure a corporate loan rate of less than 1.6%. The subsidy funding will be allocated from the provincial special fund for the development of inclusive finance. (Responsible organizations: Liaoning Provincial Finance Department, Liaoning Provincial Development and Reform Commission, Liaoning Provincial Industry and Informatization Department)

 

5.Giving full play to the role of financing guarantee and re-guarantee. All government-run financing and guarantee organizations are encouraged to reduce the rate of guarantee service to below 1% for the key enterprises engaged in epidemic containment as well as SMEs and agricultural and rural enterprises severely affected by the epidemic. The financial departments of all levels shall grant proper amount of subsidy to the guarantee service organizations; Liaoning Guarantee Group can provide direct financing and waive guarantee fees; the expiry date of cooperation of those re-guarantee institutions included in the provincial re-guarantee system shall be unconditionally extended to the date when the epidemic outbreak is over. The declaration, filing and compensation shall be conducted in line with the actual condition, and the proportion of provincial level compensation shall be raised from 20% to 40% without being limited by re-guarantee cooperation credit line. (Responsible organizations: Liaoning Provincial Finance Department, Liaoning Guarantee Group, Liaoning Agricultural Guarantee Company, all municipal people’s governments of Liaoning Province)

 

6. Give full play of the role of the emergency on-lending fund and make full use of the emergency on-lending fund of 300,000,000 Yuan provided by Liaoning Guarantee Group. Key enterprises engaged in epidemic containment and enterprises severely affected by the epidemic which are in urgent need of funds, shall be granted. emergency on-lending fund and fast green channel of examination and approval of emergency on-lending service. The service life of individual transactions shall be appropriately extended. Actively coordinate banks to shorten the time required for examination and approval of loans, and offer preferential charges and rates to on-lending service. (Responsible organizations: Liaoning Provincial Finance Department, Liaoning Guarantee Group)

 

7. Increasing the interest subsidy to entrepreneurship guaranteed loans made by individuals and enterprises. Borrowers who suffer from the novel coronavirus-caused pneumonia and were granted the individual entrepreneurship guaranteed loans can apply to the lending bank for the extension of payment terms, with the renewed period not exceeding one year. The financial departments shall continue to provide subsidized interest rate support; financial departments of all levels shall join forces with relevant parties to give priority support to those individuals and SMEs who temporarily lost sources of income during the outbreak when they apply for entrepreneurship guarantee loans. (Responsible organizations: Liaoning Provincial Finance Department, Liaoning Provincial Department of Human Resources and Social Security, Liaoning Provincial Department of Agricultural and Rural Affairs, Liaoning Provincial Bureau of Financial Supervision and Regulation, Liaoning Provincial Bureau of Forestry and Grassland, Liaoning Provincial Women’s Federation, Shenyang Branch of the People’s Bank of China)

 

8.Scaling up the investment in fixed assets of key enterprises. The development of new fixed-assets investment made by enterprises manufacturing epidemic prevention and control materials(including medical mask, medical protective clothing, medical goggles, medical gloves ,medical alcohol and disinfectants, etc.) in Liaoning shall be supported by making the most of the Assistance Fund for Construction of the Liaoning Coastal Economic Zone, the Specialized Fund for Industrial Development in the Northwest of Liaoning and the Specialized Fund for Supporting the Enclave Economy. The proportion of subsidy on fixed-asset investment can be increased properly. Projects construction can be started first with related procedures being supplemented and improved later on in line with the principle of “Adopting special measures on special issues”and the “examination and approval based on incomplete files”. Departments overseeing project approval, planning, land, environment impact assessment, bidding and construction shall step up the online examination and approval of related procedures without on-site business handling.(Responsible organizations: Liaoning Provincial Development and Reform Commission, Liaoning Provincial Department of Natural Resources, Liaoning Provincial Bureau of Housing and Urban-rural Construction, Liaoning Provincial Department of Ecology and Environment)

 

9. Properly solve the financing problems of enterprises in difficulty. For enterprises with development prospects but temporarily affected by the epidemic and in difficulties, especially small and micro enterprises, financial institutions should not blindly take out loans, cut off loans and suppress loans, but to maintain the stability of enterprises' financing scale by means of extension, non-repayment of principal, and recognition of loan term and structure, increase of credit loans, and increase capital support when necessary. Financial institutions should appropriately reduce the loan interest rate for small and micro enterprises to reduce the financial burden of enterprises. For the enterprises that are affected by the epidemic and encounter difficulties in stock pawns, corporate bond redeeming, information disclosure, etc., we should guide them to make good use of the related policies of the CSRC and the exchanges to solve the liquidity crisis and get through the difficulties through appropriate extension, new debt issuance and old debt repayment and delayed disclosure. (Responsible Units: Liaoning Provincial Financial Supervision and Administration Bureau, Shenyang Branch of the people's Bank of China, Liaoning Banking and Insurance Regulatory Bureau, Liaoning Securities Regulatory Bureau)

 

10. Strengthen the financing connectivity among governments, banks and enterprises. Local health, development and reform, industry and information, financial supervision, People's Bank of China and other departments should establish communication and coordination mechanisms to promote the connectivity among governments, banks and enterprises. In order to strengthen the financing connectivity among governments, banks and enterprises by making use of online means such as credit and information platforms, list management and information sharing system shall be implemented for key enterprises that produce, transport and sell the following products, including medical protective clothing, medical masks, medical goggles, new coronavirus detection kits, negative pressure ambulances, disinfectors, 84 disinfectants, infrared thermometers and related drugs used for the epidemic, as well as important living materials. (Responsible Units: Liaoning Provincial Development and Reform Commission, Liaoning Provincial Industry and Informatization Department, Health Commission of Liaoning Province, Liaoning Provincial Financial Supervision and Administration Bureau, Shenyang Branch of the people's Bank of China, Liaoning Banking and Insurance Regulatory Bureau)

 

11. Give full play to the guiding role of credit funds. We will give full play to the role of "national teams" of policy banks such as China Development Bank, Agricultural Development Bank of China, the Export-Import Bank of China, and China Export & Credit Insurance Company to fully meet the financing needs of epidemic prevention and control. Set up emergency loan fund for prevention and control of pneumonia epidemic and accelerate the implementation of the first batch of RMB 2 billion loan, which is specially used for the disease treatment and epidemic prevention and control related purposes in Liaoning Province, such as medical assistance, material procurement and emergency equipment purchase. Its fund payment shall be completed by Liaoning Branch of China Development Bank in accordance with the current regulatory requirements. (Responsible Unit: SASAC Liaoning, Liaoning Branch of China Development Bank)

 

Ⅲ、 Easing the burden of enterprises

12. Social insurance payment could be deferred. For the small and medium-sized enterprises affected by the epidemic situation and faced temporary difficulties in production and operation, and indeed unable to pay social insurance premiums in full amount, the collection period of social insurance premiums payable in January and February will be extended to the end of March after approval according to the regulations. For the enterprises and industries which are seriously damaged, such as tourism, accommodation, catering, exhibition, trade circulation, transportation, education and training, literary and art performances, film and television theaters, ice and snow sports, the collection period of social insurance premiums payable during the period affected by the epidemic can be extended to the end of June upon the confirmation of the competent authorities of related industries. The overdue fine shall be exempted during the period of deferring. After the expiration of the period of deferring, the enterprises shall make up the social insurance premium in full amount, which shall not affect the rights and benefits of the insured personnel. (Responsible Unit: Liaoning Provincial Department of Human Resources and Social Security, Liaoning province Finance Department, Liaoning Provincial Tax Service STA)

 

13. Implementing policies to help stabilize jobs. 50% of the actual unemployment insurance premium paid in the previous year shall be refunded to the eligible insured enterprises that do not lay off employees or lay off few employees. For eligible insured enterprises that face temporary production and operation difficulties and are promising to recover and insist on no layoffs and few layoffs, the "refund to enterprises facing difficulties and being promising to recover" can be implemented according to six months' local per capita unemployment insurance premium and the number of insured employees, or 50% of enterprises and their employees' social insurance premium in six months. The period for the implementation of the policy shall be in accordance with the provisions of the state. (Responsible unit: Liaoning Provincial Department of Human Resources and Social Security)

 

14. Tax exemption for small and medium-sized enterprises. The enterprises may apply for a half reduction of the real estate tax and urban land use tax, should they suffer heavy losses due to the epidemic situation, or their normal production and operation activities are greatly affected, or they do have trouble in paying the real estate tax and urban land use tax. As of January 1, pre-tax one-time deduction is temporarily allowed for the production capacity expansion and purchase of equipment of key materials production enterprises for prevention and control, and their VAT increment tax allowance is refunded in full amount; the VAT is exempted for transportation of key prevention and control materials, public transportation, living service and postal delivery income; the registration fee is exempted for the related anti-epidemic drugs and medical devices, and the support for the research and development of drugs and vaccines is strengthened; the civil aviation development fund is exempted for civil aviation enterprises. (Responsible unit: Liaoning Province Finance Department, Liaoning Provincial Tax Service STA)

 

15. The interest of enterprises which receive direct investment from provincial industrial (venture) investment guidance fund will be reduced or exempted. For the small and medium-sized enterprises that are affected by the epidemic and have difficulties in temporary production and operation, should they fail to pay for the interest generated by the direct investment from the provincial industrial (venture) investment guidance fund in time, such interest shall be exempted in part or in whole as appropriate. (Responsible unit: Liaoning Province Finance Department, Liaoning Provincial Social Security Fund Council)

 

16. Promoting the construction of government invested projects. For small and medium-sized enterprises undertaking government invested projects facing temporary difficulties due to the epidemic situation, governments at all levels, in sight of SMEs’ application, should actively raise funds and entrust the project commissioning entity, in consultation with the financial department at the same level, to prepay the construction cost according to the project construction plan for those with complete construction procedures and conditions for commencement and construction so as to help the construction enterprises solve the financing difficulties. (Responsible unit: provincial project units and each municipal government)

 

17. Establishing a reward mechanism for providing assistance. All regions shall formulate effective policies and measures to support small and micro enterprises that are greatly affected by the epidemic situation, have prospects but face temporary difficulties, among which small and micro enterprises that produce key materials for epidemic prevention and control and materials for people's livelihood shall be given key support. The provincial government shall set up a special fund and give incentive subsidies according to the implementation of relevant policies and financial capital investment of each city. (Responsible units: Liaoning Province Finance Department, Liaoning Provincial Industry and Informatization Department, each municipal government)

 

18.Part of the deposit for tourism service quality guarantee shall be refunded temporarily. Support travel agencies to cope with operational difficulties and temporarily refund part of the quality guarantee deposit to travel agencies, which is 80% of the current deposit. The temporary refund of deposit shall be returned in full before February 5, 2022. (Responsible unit: Provincial Department of Culture and Tourism)

 

IV. Reduce operating costs 

19.Relieve the cost pressure on energy consumption of enterprises. For small and medium-sized enterprises affected by the epidemic situation, facing temporary production and operation difficulties and being promising in recovery, and unable to pay water, electricity and gas fees on schedule, the enterprise could apply to competent authority for approval of postponing the payment for no more than 3 months. After the deferment period expires, the enterprise shall pay the deferred water, electricity and gas fees in full, without affecting the enterprise's current endowment of preferential policies for water, electricity and gas fees. (Responsible unit: Municipal Governments)


20.Reduction or exemption of rents for SMEs. For small and medium-sized enterprises that rent state-owned assets for commercial purpose, rents shall be exempted for one month and halved for two months. During the epidemic period, priority should be given to policy support for various functional carriers, such as business parks, science and technology business incubators, business innovation demonstration bases, etc., which provide rent reduction and exemption for small and medium-sized enterprises. For renting other commercial space, the owners (landlords) are encouraged to reduce or exempt the rents for the tenants based on the negotiation between the two parties. (Responsible unit: Provincial Department of Science and Technology, Provincial Department of Industry and Information Technology, Provincial State-owned Assets Supervision and Administration Commission, Municipal Governments)

 

21. Zero-charge registration practice shall be applied to certain medical device products, including medical masks, medical surgical masks, medical protective masks, medical protective clothing, medical ventilator and accessories produced by small and medium-sized enterprises, to promote the production of related medical device products. (Responsible unit: Provincial Development and Reform Commission, Provincial Department of Finance)


 

V. Strengthen Comprehensive Supply

22.Make every effort to ensure the supply of daily necessities such as "vegetable basket" products. Actively organize the production of vegetables, livestock and poultry, promote related feed, slaughter, and processing enterprises to speed up the resumption of production, release corn reserves to the market, ensure the production needs of the livestock industry, and increase the supply of meat, eggs and milk. Strengthen efforts in safegurading transportation, and restrain illegal acts such as blocking traffic without authorization. Emphasize the protection of epidemic prevention and control materials and the transportation of necessities in key areas, smooth the green channels of "vegetable basket" products, and strictly implement no-stop, no-check, no-charge for vehicles to facilitate convenient transportation. (Responsible unit: Provincial Development and Reform Commission, Provincial Public Security Department, Provincial Department of Agriculture and Rural Affairs, Provincial Department of Transportation)


23.Standardize the employment of enterprises. Support enterprises to collectively negotiate with employees, and adopt measures such as negotiating salary, adjusting working hours, rotating shifts, on-job training, and other measures to retain labor relations. For enterprises that intend to make layoffs for economic reasons, guide them to formulate and implement employee resettlement programs in accordance with laws and regulations, explain the relevant situation to the union or all employees 30 days in advance, compensate in accordance with the law, repay the wage arrears, and make up the social insurance premium arrears. (Responsible unit: Provincial Department of Human Resources and Social Security, Provincial Federation of Trade Unions)

  
24.Strengthen research and development and technical research on epidemic prevention drugs. Actively organize relevant small and medium-sized enterprises to carry out emergency scientific research on the pneumonia epidemic of novel coronavirus infection. Support medical institutions to actively carry out clinical research on innovative methods for pneumonia prevention, diagnosis and treatment for novel coronavirus infections, promote innovative medical devices and innovative drugs to enter clinical applications as soon as possible, and support pharmaceutical companies to accelerate the development and production of antiviral drugs and testing reagents. (Responsible unit: Provincial Department of Science and Technology, Provincial Department of Finance, Provincial Health Commission)
  


25.Open up a green channel for enterprise credit restoration in the field of epidemic prevention and control. For enterprises in the field of epidemic prevention and control that have become the main body of discredit, a green channel will be opened up for credit restoration. Provide guidance and reduce relevant expenses in credit verification, credit training, credit report and other credit restoration work. After the restoration is completed, the relevant departments shall, in accordance with the legal procedures, stop publicizing their discredit records and terminate the implementation of joint disciplinary measures. (Responsible unit: Provincial Development and Reform Commission, Shenyang Branch of the People's Bank of China)

 

The entities eligible for above policy and measures are those enterprises that conform to the Regulations on the Standard of Small and Medium-sized Enterprise Type jointly issued by the Ministry of Industry and Information technology, the National Bureau of Statistics, the National Development and Reform Commission and the Ministry of Finance (MIIT Joint Enterprises [2011] No. 300), and the implementation period is until April 30, 2020. All terms shall be interpreted by corresponding responsible units.