Hunan rolls out support for SME production resumption

Changsha, the capital of central China's Hunan province, rolled out 20 measures on Saturday to help small and medium-sized enterprises return to production.

So far, 2,000 enterprises in Changsha have resumed production following disruptions due to the outbreak of novel coronavirus, and 160,000 industrial workers have returned to work.

While larger companies are more capable of coping with various challenges, SMEs are more sensitive to changes in the external environment. Changsha therefore launched the measures to stabilize employment, reduce costs, provide preferential financial services and ensure sustainable development.

The city government will reward labor recruitment agencies that help companies employ workers . If labor recruitment agencies manage to recruit 100, 300, or 600 workers for industrial production enterprises, they will be granted between 30,000 and 100,000 yuan accordingly, provided that the new workers are employed for at least three months.

For companies that rent State-owned land, the measures offer a month's free rent and charge just half rent for two months following February so as to reduce companies' costs.

If companies fail to repay their loans due to the outbreak, they will be allowed to delay their payments for three months without penalty.

The government will also provide a subsidy of up to 500,000 yuan as long as the company also takes a bank loan of at least 2 percent of the amount of the subsidy.

"The package of measures carried out by government removes our burden by reducing costs. We are encouraged and these preferential policies help us overcome difficulties," said Peng Jian, general manager of Changsha Hejie Industry Co Ltd.