Policy Measures to Support Operation and Development of Enterprises amid Fight against Novel Coronavirus Pneumonia was established by Shenyang Municipal Government in order to give full play the important role made by enterprises in the prevention and control of NCP and solve problems of the enterprises in production and operation. Now the English version is publicized for the reference of relevant enterprises.

Policy Measures of Shenyang Municipal Government to Support Operation and Development of Enterprises amid Fight against Novel Coronavirus Pneumonia

To act on the important speeches and guiding principles of General Secretary Xi Jinping on working resolutely to win the battle of epidemic prevention and control, fully implement decisions and arrangements of the CPC Central Committee, the State Council, the CPC Liaoning Provincial Committee and Liaoning Provincial Government, give full play to the important role of enterprises in epidemic prevention and control, resolve difficulties and challenges of enterprises in production and operation, render full support to enterprises to ensure stable operation and sustainable development, the following policy measures are hereby formulated based on the guiding spirit of Notice of Liaoning Provincial People’s Government on Issuing Policy Measures to Support Production and Operation of SMEs amid Fight against Novel Coronavirus Pneumonia Epidemic (No.6 (2020) Issued by Liaoning Provincial Government) and real conditions of Shenyang.

1.Resumption of work by enterprises should be managed strictly. Enterprises in the administrative region of Shenyang which are involved in ensuring city function and operation, providing necessities for enterprise production, epidemic prevention and control as well as people’s livelihood and guaranteeing the national economy and people’s well-being should be ensured to resume operation and production. In the meantime, plan on operation and production resumption of enterprises and plan on epidemic prevention and control must be made across the board to fulfill the two most important tasks of guaranteeing safe production and epidemic prevention and control to ensure production and operation of enterprises resumed orderly and normal production and operation order restored gradually. (Responsible departments: Governments of Districts, Counties (County-level City), Municipal Health Commission, Emergency Bureau)

2.Speed up the development of major projects. According to the timeline and relevant requirements of work resumption, we continue to promote major projects to resume construction as quickly as possible, especially for those with favorable conditions. In line with the principle of “Special Cases with Special Methods, Urgent Matters with Fast Response”, we will streamline processes and speed up approval procedure. Online Bidding Platform for projects will be established from now on and green channel will be opened. Work team and management service will be established to solve problems in the process of planning, site selection, bidding for land development, household relocation, and approval procedures. (Responsible departments:  Governments of Districts, Counties (County-level City), Municipal Development and Reform Commission, Municipal Commerce Bureau)

3.Establish supporting mechanism for work resumption and reconstruction.24-hour emergency hotline (12345-1-6) is established. Public service platforms and internet channels such as WeChat are protected to facilitate channels of requirement and solving problems in the process of work resumption and reconstruction. The role of government, social intermediary organizations will be given full play to create favorable conditions for enterprises to recruit workers. “Ten Thousand People Enter Ten Thousand Enterprises” Campaign will be implemented, during which, leaders of districts and counties (cities) will be assigned with a number of enterprises to provide help so as to solve operation problems. 

4.Special support fund for epidemic prevention and control supplies will be established from special fund for municipal industrial development. During the prevention and control of epidemic, enterprises that manufacture medical masks, protective suits and other important medical supplies will be given subsidies of 20% fixed asset investment of no more than 3 million yuan for the procurement of equipment and upgrading of production lines.(Responsible departments: Municipal Bureau of Industry and Information Technology, Municipal Finance Bureau)

5.Enhance scientific research on prevention and control supplies. Promote cooperation with provincial medical equipment research institute and jointly establish testing labs and testing service platforms. Actively organize enterprises and research institutes to jointly initiate scientific research on NPC, supporting medical institutions to conduct prevention, diagnosis and clinical research of innovative products and encouraging medical enterprises to accelerate research, development and production of antivirus medicines and testing agents.

6.Strengthen the production of materials for epidemic prevention and control. Encourage relevant producers to fully integrate various resources such as sterile space and radiation testing, and enhance existing production capacity by way of joint production and commissioned production to ensure supply. Dispatch working group to key producers to provide easy access for qualification and product verification, and coordinate to solve production problems in a timely manner. (Responsible departments: Municipal Bureau of Industry and Information Technology, Municipal Administration for Market Regulation)

7.Alleviate the corporate unemployment insurance burden. For those participating enterprises with no layoff or modest layoff, 50% of the unemployment insurance premiums actually paid in the previous year will be returned. The eligible participating enterprises that face temporary production and operation difficulties while still struggle to keep no layoff or modest layoff will get premium return. The return rate will be determined based on the 6-month local monthly per capita unemployment insurance and the number of employees covered. The policy for the temporary reduction of the unemployment insurance premium rate to 1% will be valid through April 30th, 2021. (Responsible departments: Municipal Bureau of Human Resources and Social Security, Municipal Bureau of Industry and Information Technology, Municipal Finance Bureau)

8.Payment extension of basic medical insurance premiums. With the consent from medical insurance and tax authorities, the participating enterprises and individuals who cannot pay the basic medical insurance premiums on time due to the impact of the epidemic situation can apply for an extension of payment until March 31st, 2020. The non-payment record will not affect the benefits of participating enterprises and individuals. ((Responsible departments: Municipal Bureau of Medical Insurance, Municipal Bureau of Taxation)

9.Extend the application deadline for vocational skills subsidies. For the those who will have held the vocational skill level certificates or vocational qualification certificates (skills) for one-year period by the end of March 2020 and have not yet applied for subsidies, the application deadline will be extended until three months after the first-level public health emergency response in our city is lifted. (Responsible department: Municipal Bureau of Human Resources and Social Security)

10. Allow tax breaks and deferred payment for small and medium-sized enterprises. Enterprises which suffer significant losses and whose normal production and operation activities are significantly affected due to the epidemic situation, resulting in real difficulties in paying real estate tax and urban land use tax, can apply for a 50% reduction of real estate tax and urban land use tax. Starting from January 1st, 2020, a one-time deduction before tax is temporarily allowed for the purchase of equipment with the aim to expand the production capacity of key materials for epidemic prevention and control, and a full amount of the incremental value-added tax credit will be refunded; income of transportation of key materials for epidemic prevention and control, public transportation , livelihood services and postal delivery are exempt from VAT. Enterprises that have real special difficulties and are not able to pay  taxes on time can apply to the municipal tax authorities for delaying payment in accordance with the law for a maximum of 3 months. ( Responsible department:  Municipal Bureau of Taxation)

11.Guide to reduce rents on real estate and land receivable for small and medium-sized enterprises. During the epidemic prevention and control period, the state-owned real estate owners should take the lead in reducing the rent of the leased small and medium-sized enterprises' real estate and land, and encourage other real estate owners to reduce the rent for the tenants, which should be solved by both parties through consultation. Small and medium-sized enterprises as lessees of public housing in the city can be temporarily exempted from the house rent for three months.  (Responsible Departments: Municipal SASAC, Municipal Real Estate Bureau, Municipal Organ Affairs Administration Bureau)

12.Ease the pressure of energy cost for SMEs. SMEs affected by the epidemic situation and faced with temporary difficulties in production and operation, which are unable to pay water, electricity and gas fees on schedule, shall apply to the competent authorities for an extension of payment after approval, which shall not exceed three months at most. After the expiration of the suspension period, the enterprises shall make up the water, electricity and gas fees in full, which shall not affect the enterprise's enjoyment of the current preferential policies for water, electricity and gas fees. (Responsible departments: Governments of Districts, Counties (County-level City)) 

13.Encourage banking institutions to provide loan renewal services for enterprises and lower interest rates. During the epidemic prevention and control period, banks are encouraged to take measures such as delaying repayment and reducing overdue interest for enterprises. For enterprises that are short-term overdue due to the impact of the epidemic, a certain grace period and procedures simplification policy can be implemented. After the epidemic is over, relevant procedures and data can be supplemented. The five-level classification of loans will not be adjusted temporarily. The overdue records of enterprises during the epidemic period will not be used as the entry restriction for recredit.

For enterprises that meet the conditions for renewal of loans and apply for renewal of loans, banking institutions shall, according to the original loan term and conditions, take the initiative to make arrangements for renewal of loans for enterprises and support enterprises to overcome difficulties. When commercial banks renew loans for enterprises, the interest rate level shall be implemented in accordance with the one-year LPR reduction point announced by the People's Bank of China at the time of loan issuance, and the proportion shall be more than 10% lower than the original loan interest rate level, so as to ensure that the financing cost of enterprises is not higher than the level of the same period in 2019.

Actively promote policy banks, state-owned commercial banks and joint-stock banks to provide preferential loan rates to key enterprises for epidemic prevention and control. For enterprises listed in the list of key national, provincial and municipal key medical product and key living material producers, the upper limit of loan interest rate is respectively 100 basis points, 50 basis points and 30 basis points of latest one-year LPR published by the People's Bank of China at the time of loan issuance.

For new loans, banks can grant them with reference to the above loan renewal operations. Non-bank financial institutions and local financial organizations can refer to banking institutions for operation. (Responsible departments: Municipal Finance Bureau, Business Management Department of Shenyang Branch of the People's Bank of China, Municipal Bureau of Industry and Information)

14.Encourage guarantee agencies to continue guaranteeing and reducing fees. The financing guarantee agencies shall carry out continuing guarantee service for enterprises with the need of renewed loans, appropriately reduce the requirements of counter guarantee and the rate of guarantee shall be lowered more than 10% than the original guarantee rate. In principal, the guarantee rate charged by policy-based guarantee agencies for small and micro enterprises with single-enterprise guarantee amount of 5 million yuan or less and for agriculture, rural areas and peasants shall not exceed 1%. For the small and micro enterprises with single-enterprise guarantee amount of more than 5 million yuan and for agriculture, rural areas and peasants, the guarantee rate shall not exceed 1.5%. The gap between the guarantee rate and 50% of the bank’s benchmark interest rate for the same period shall be fully subsidized by the Financial Department of the same level on a 1:1 basis. (Responsible departments: Municipal Finance and Development Bureau, Municipal Finance Bureau, Municipal Bureau of Industry and Information Technology)

15.Make the best use of the special government financial funds. Shenyang Municipal government will expand the use of special funds for risk compensation in our city. Banks and operating organizations shall include the enterprises that meets the “loan assistance” requirements and apply for loan renewal into the scope of support. Make good use of the “emergency loan funds”, for the enterprises who can only repay the loan of the principal to meet the renewal requirements, “emergency loan funds” can be used to repay the principal and get a renew loan. During the epidemic prevention and control period, the rate of government “emergency loan funds”  shall be lowered by 10% and the examination and approval procedures shall be simplified. (Responsible departments: Municipal Finance and Development Bureau, Business Management Department of Shenyang Branch of the People’s Bank of China)

16.Strengthen the procurement and storage of emergency materials for epidemic prevention and control. Establish green passage for the medical institutions for the procurement of the emergency materials for epidemic prevention and control. Carry out independent procurement and record-keeping procedures to ensure the emergency materials for epidemic prevention and control are in place in a timely manner. Adjust the structure of purchasing and storing for emergency materials for epidemic prevention and control and increase efforts to purchase and store materials for epidemic prevention and control for public health emergencies. (Responsible departments: Municipal Development and Reform Commission, Municipal Commerce Bureau, Municipal Health Commission, Municipal Finance Bureau)

17.Effectively guarantee the smooth transportation of the emergency materials for epidemic prevention and control. Strengthen the safety control of the transportation, promptly stop illegal activities and severely investigate and punish price gouging and likewise activities in transportation to ensure the smooth and safe transportation of the emergency materials for epidemic prevention and control. Timely coordinate and solve the transportation problems of the emergency materials for epidemic prevention and control to ensure the timely and accurate transportation of the emergency materials for epidemic prevention and control across provinces and cities. (Responsible departments: Municipal Transportation Bureau, Municipal Public Security Bureau)

The small and medium-sized enterprises referred to in the policies shall be the enterprises that meet the Standard Provisions on Classification of Small and Medium-sized Enterprises (Ministry of Industry and Information Technology joint enterprise〔2011〕NO. 300) jointly issued by the Ministry of Industry and Information Technology, National Bureau of Statistics, National Development and Reform Commission and Ministry of Finance. The implementation period of the policies and measures is tentatively 3 months from the date of release except as stipulated by national laws. All terms and conditions shall be interpreted by the responsible departments.