Government Subsidies
Your Current Location: English > Government Subsidies > Municipal Government's Subsidies
Implementation Rules of Beijing Municipality for the Administration over Innovation Financing Fund for Small and Medium-sized Enterprises

2018-10-09 11:16  

Policy name  

Implementation Rules of Beijing Municipality for the Administration over Innovation Financing Fund for Small and Medium-sized Enterprises  

Issued by  

Beijing Municipal Bureau of Finance and Beijing Municipal Commission of Economy and Information Technology  

File No. / date  

2012  

Scope of application  

1.Small and medium-sized enterprises securing debt funds through set bonds, notes, trusts, financial leasing, privately raised bonds and other innovative financing channels; and the capital is used in the normal production and business operation of the enterprises, mainly including: purchase of equipment, raw materials; new construction, reconstruction or expansion of their production, R&D and office buildings; reconstruction of supporting facilities, expenses of technology R&D activities, etc.
2. The financial services institutions having strong drive and promotion effects on the innovation financing of small and medium-sized enterprises and at the same time, applying rates for small and medium-sized enterprises lower than standard market rate.
3. Guarantee agencies and re-guarantee agencies providing financing and guarantee (re-guarantee) services for small and micro enterprises.  

Support manner and amount  

I. Discount loans: Discount, i.e. 2% of the financing obtained by small and medium-sized enterprises via innovative financing channels will be given to the extent that the discount term for each project normally does not exceed 2 years and the discount for each enterprise in each year may not be more than RMB 2 million.
II. Reward:
  1. Appropriate rewards not exceeding 0.5% of the actual financing will be granted to the financial services institutions actively developing innovative financing services, and adopting the charging standard lower than the market rate.
  2. Appropriate incentives will be given to the guarantee and re-guarantee agencies developing small and micro guarantee business and single guarantee quota less than RMB 8 million. However, the reward granted to any single guarantee or re-guarantee agencies is generally not more than RMB5 million per year.
  Subject to no increase of other fees standards, for the financing guarantee business the single amount of which ranges from RMB 5 million (included) - RMB 8 million, 0.5% of the guarantee amount will be rewarded; and for that the single amount of which is lower than RMB 5 million, 1% of the guarantee amount will be rewarded. For the re-guarantee business, the reward will be given at half of the ratios for guarantee business.
  Reward is mainly used as the expenses related to innovative financing business to the extent that those for staff welfare and incentives may not exceed 30% of the reward.  

Application requirements  

I. Enterprises applying for innovation financing fund shall meet all of the following qualifications:
  1. Fall into the category of small and medium-sized enterprises;
  2. Registered in Beijing municipal authorities for industry and commerce and have independent legal person qualification;
  3. Pay taxes according to law and conduct their main production and operation activities and settlement in Beijing;
  4. Have sound financial management system and standardized internal management;
  5. Duly sign with the financial services agencies the underwriting agreement, the prospectus, the trust loan contract, the contract for financial leasing, bank loan contracts and other formal contracts, and the fund is actually in place;
  6. No supports from other municipal financial fund discount have been obtained for their innovative financing.
II. Financial services institutions applying for innovation financing fund shall meet all of the following qualifications:
  1. Have independent legal person qualification, favorable financial revenues and expenditures and standardized management;
  2. Have perfect financial management system, sound service process and service quality assurance measures and reasonable charging standards;
  3. Evidence proving their active development of innovative financing services of small and medium-sized enterprises and adoption of the charging standard lower than the market rate.