Guiyang Economic and Technological Development Zone (GETDZ) on Feb 10 released policies supporting rent, funding and innovations -- to reduce the impact of the novel coronavirus pneumonia outbreak on its resident small and medium-sized enterprises, according to GETDZ officials.
They said that generally activities have been cancelled and consumption reduced, which creates a challenge for many SMEs.
The support measures for SMEs in the zone --located in Guiyang, capital of southwestern Guizhou province -- are tentatively being implemented from the date of release to July 31.
GETDZ has decided to set up a special fund of 20 million yuan ($2.87 million) to grant up to 1 million yuan to businesses engaged in the production of materials in short supply and support facilities during the period of epidemic prevention and control.
In addition, it will grant up to 500,000 yuan to the enterprises engaged in epidemic prevention and control and which resume work on time.
A 50-million-yuan investment fund will be set up to provide equity investment support, officials said.
Grants of 2 million yuan to 10 million yuan in funding support will go to key enterprises or enterprises -- that are greatly affected by the epidemic, have good development prospects and are in line with the industrial development direction of zone -- in the form of preferred shares.
A special subsidy fund of 10 million yuan will be arranged for rent, to support the enterprises that insist on business operations or close down business without layoffs or fewer layoffs -- in accordance with the epidemic prevention regulations during the period.
At the same time, the zone has decided to arrange a loan risk compensation fund of 20 million yuan. This will provide a certain amount of working capital loan support to key enterprises, for epidemic prevention and control or enterprises greatly affected by the outbreak.
A special interest subsidy fund of 10 million yuan is being arranged.
This will discount new loans of enterprises affected by the epidemic, helping to provide the working capital needed for personnel wages, social insurance and production -- according to 80 percent of the benchmark interest rate for current loans issued by the People's Bank of China.
For loan renewals, extensions and capital for loans of the key enterprises now working for epidemic prevention and control, interest shall be discounted at 100 percent of the current lending benchmark interest rate of the People's Bank of China.
Furthermore, 5 million yuan of special funds will be allocated to support big data industry, new digital infrastructure and other related enterprises to resume work and production as soon as possible.
The funds will also support the introduction of emerging industries such as telemedicines, online education, remote office, life services, medical equipment, testing services, data collection and data analysis.
Officials said that in respect of the 10 measures released by the GETDZ, the zone also actively supports and encourages resident enterprises and research institutes -- to carry out scientific and technological collaborative research on NCP prevention and treatment.
It is also offering rewards for major breakthroughs in the areas of NCP treatment, drug research and development, detection technology and medical equipment.
Key restaurants, vegetable shops, fresh produce markets, convenience stores -- and other associated businesses seriously affected by the epidemic or guaranteeing the basic life of the public in the prevention and control of the epidemic -- will be given a financial subsidy of 5,000-20,000 yuan.
At the same time -- according to the situation of epidemic prevention and control and the supply and demand of human resources market -- enterprises in the zone are instructed to recruit laid-off workers.
They are also instructed to recruit rural labor force and transferred workers from enterprises with difficulties in production and operation to get employment in the zone, and those who carry out work for training are being given a one-time subsidy of 300 yuan per person.