Wuhan Economic & Technological Development Zone (WHDZ) has introduced 18 measures and is to hand out more than 2 billion ($282 million) in funds to support the development of companies resident in the zone, according to the official WeChat account of the WHDZ.
The measures cover five areas: reducing the burden on enterprises, strengthening their financial support, increasing assistance to stabilize enterprises, strengthening industry support and optimizing government services.
Reducing the burden on enterprises includes reducing or exempting urban land tax and real estate tax.
Enterprises can enjoy exemption from the payment of basic endowment insurance, unemployment insurance and work injury insurance for a maximum period of five months.
For all types of market entities that lease State-owned assets for operating bases, rents are waived for three months and rents are halved for six months.
Priority will be given to policy support for innovation platforms -- such as entrepreneurial parks, incubators and maker spaces -- which reduce or exempt rent for leased SMEs during the epidemic period.
In terms of strengthening their financial support, financial institutions are encouraged to take appropriate measures such as reducing loan interest rates and reducing handling fees to reduce corporate financing costs.
A special epidemic bailout fund of 1 billion yuan and a loan fund of 100 million yuan will be set up.
Also, the WHDZ Management Committee has signed a cooperation agreement with China Construction Bank Hubei Branch, under which comprehensive financing support of no less than 10 billion yuan will be provided to WHDZ-based enterprises, backing their resumption of work and production.
Measures to increase assistance to stabilize enterprises include the return of unemployment insurance premiums, deferred payment of social insurance premiums and housing provident funds. Enterprises are being encouraged to employ locals.
For enterprises with an increase in the number of local workers for 2020 compared with the previous year, a one-time employment subsidy of 2,000 yuan per employee will be provided to the company according to the amount of new local workers in 2020 -- with a contract period of at least one year -- up to 1 million yuan in total.
