Xinhua News Agency, Shanghai, June 18 (Reporter Guo Jingdan) The "Regulations of Shanghai Municipality on Promoting the Development of Small and Medium-Sized Enterprises" was revised and adopted on the 18th by the 22nd Meeting of the Standing Committee of the 15th Shanghai Municipal People's Congress, which stipulates that the municipal and district governments of Shanghai The government financing guarantee system for SMEs provides credit enhancement services for SME financing. The newly amended regulations will come into effect today.
Ding Wei, director of the Legal Work Committee of the Standing Committee of the Shanghai Municipal People's Congress, introduced that there are many measures in the newly amended regulations that effectively ease the financing difficulties and expensive financing of SMEs. In particular, Article 28 stipulates two "fives": the guarantee magnification of government financing guarantee institutions is not less than five times in principle, and the guarantee compensation rate can reach 5 percent.
The regulations make it clear that the municipal and district financial departments in Shanghai should write off the compensation losses incurred by government financing guarantee institutions in a timely manner and supplement the capital in accordance with the regulations. If the relevant units and individuals have fulfilled their duties of due diligence and compliance review, they may not be held accountable. In addition, Shanghai’s financial funds used to support the development of small and medium-sized enterprises should give priority to safeguarding the needs of government financing guarantee institutions to enhance the financing guarantee function of small and medium-sized enterprises and to enrich the financing guarantee funds.
"Government financing guarantee institutions adhere to the quasi-public positioning, and can better serve the small and medium enterprises." Ding Wei said.
Since the outbreak, Shanghai has tailored preferential policies for small and medium-sized enterprises and made every effort to reduce their burden. Some special policies in special periods have also been absorbed into the newly revised regulations and transformed into "long-term measures." If the regulations are clear, Shanghai will establish an emergency assistance mechanism for SMEs. When emergencies such as natural disasters, public health events, or other major events affecting the production and operation of SMEs occur,
For the small and medium-sized enterprises that are more affected, Shanghai’s municipal and district people’s governments and their relevant departments should issue targeted policies and measures to increase employment stability, financial relief, rent exemption, and financial support to alleviate enterprises. Burden, and provide timely guidance to the enterprises in need on legal issues such as force majeure, exemption and flexible employment, and help enterprises resume normal production and operation activities.