February 7, Nanjing announced 10 measures to support the steady development of the small and medium-sized enterprises (SMEs).
Background of the Measures
At present, the whole country is focusing on winning the fight against Novel Coronavirus Pneumonia in the spirit of General Secretary Xi Jinping's important instructions. Impacted by the epidemic outbreak, the resumption of work and production of enterprises is delayed, and the production and the operation are under great pressure, especially for those SMEs whose abilities to resist difficulties and risks are generally weak. At this pivotal moment, to help SMEs to resume production and tide over difficulties is one of the important duties of the party committees and governments at all levels, and to triumph over the epidemic and restore normal order as soon as possible will be the most powerful support for SMEs' development. Against this background, the CPC Nanjing Municipal Committee and Nanjing Municipal People’s Government decided to formulate and issue Several Measures of CPC Nanjing Municipal Committee and Nanjing Municipal People’s Government on Promoting the Steady Development of the Small and Medium-sized Enterprises (hereinafter referred to as “Measures”) on the basis of full implementation of the state and provincial supportive policies, in order to uplift SMEs’ confidence to tide over difficulties together and promote the steady development of SMEs.
Main Features of the Measures
High Accuracy
The specific measures are to address such problems as financing loans, recruitment of employees, cost burdens by focusing more on the general difficulties faced by SMEs in this special period of time. Nanjing has added some new measures besides elaborating further on the policies issued by higher government authorities.
Huge Benefits
Various measures—local retention tax incentives, working capital loan discounts, reduction of social security costs, rent reduction and targeted fund allocation —will be taken to support SMEs based on their contribution to local economic development. It is expected that SMEs will benefit more than 3 billion yuan from these measures.
High Inclusiveness
The ten measures are expected to support a total of 250,000 SMEs across multiple sectors and industries such as production, procurement and services. At the same time, there are specific measures targeted on technology-based SMEs, as well as entrepreneurial parks and incubators.
Easy to Implement
All the measures are practical, stating clearly what rewards and subsidies are given to enterprises, how much cost and burden will be reduced, which departments will be responsible and the time limit for finishing related process. Relevant government departments will follow up with more detailed implementation plans.
Strong Guidance
The circular proposes to cut expenses of Party and government departments in an effort to fully support the stable development of SMEs, encouraging all aspects of society to work together to tide over the epidemic outbreak.
Tangible subsidiaries of more than 3 billion yuan will be efficiently allocated with easy access
1.5 billion yuan: grant full subsidization of the local-government-held tax contributions by small-scale taxpayer
300 million yuan: increase subsidiaries for technology reform investment in enterprises
500 million yuan: help reduce interest rates of working capital loans for enterprises
800 million yuan: support enterprises to keep jobs and maintain production
150 million yuan: reduce or remit state asset rental, which can benefit thousands of enterprises
Enlending funds will provide new support
Special funds will be efficiently allocated
Reduce expenses of 500 million yuan: Party and government organizations take the lead to tighten our belts
Party and government organizations continue to take the lead to tighten our belts. The public expenditure will be reduced further by a quota of 10%. Budgeting for official vehicles purchase and official reception is further diminished by 10%. The increase of general budgeting will be under strict control during implementation this year. It is predicted that the whole city may save another 500 million yuan to support the above-mentioned policies on stabilizing development of small and micro enterprises.
Optimize public services and serve as a good steward for enterprises
Help enterprises to steadily return to work
Provide more online, scheduled and assisted/commission services
Carry out human-based management in enterprise credit
Strengthen law services