Private firms, SME support program released

Writer: Xia Yuanjie  |  Editor: Holly Wang  |  From: Shenzhen Daily  |  Updated: 2021-02-23

The Shenzhen Municipal Government has recently decided to implement the 2022 Private and Small- and Medium-sized Enterprises Innovation and Development Support Program to financially support these companies’ growth, Shenzhen Economic Daily reported yesterday.

The Municipal Industry and Information Technology Bureau released application guidelines for the support program. The significant grants will target the restructuring, IPO (initial public offering) and financing guarantees of private and small- and medium-sized enterprises (SME). They include a subsidy for the restructuring and IPO training, and a subsidy for loan guarantee costs.

The amounts of subsidies will be subject to the maximum limit of the fund for annual grants as well as the results of special audits.

Companies that plan to issue IPOs on the Chinese mainland and have completed the stock-into-market tutorship will be subsidized at up to 1.5 million yuan (US$232,000).

Companies that plan to issue IPOs on overseas securities markets will be given a grant of up to 800,000 yuan.

Companies that have been newly listed on the National Equities Exchange and Quotations (NEEQ, or the New Third Board) will receive a subsidy of a maximum of 500,000 yuan.

Those selected into the “innovation level” of the NEEQ will be rewarded with an extra incentive, which is up to 300,000 yuan. High-end listed companies from other regions that move into Shenzhen will be funded up to 5 million yuan.

Listed companies from other regions restructured by local firms under market operation principles and transfer their registration to Shenzhen will be given incentives with a maximum of 5 million yuan.

The subsidies for loan guarantee are aimed at encouraging these companies to obtain bank loans via financial guarantee institutions.

For these enterprises, bank loans with a guaranteed amount of 5 million yuan or below will have the guarantee fee fully subsidized. Loans with a single guaranteed amount between 5 to 8 million yuan (inclusive) will be covered at up to 80 percent of the actual guarantee fee. The maximum annual subsidy for an enterprise shall not exceed 300,000 yuan.