III. Increasing support from the financial community to help the enterprises overcome the difficulties

xiv.  Diversified channels to offer financial support for enterprises

Shanghai Pudong Development Bank, Bank of Shanghai, and Shanghai Rural Commercial Bank are encouraged to lend more and to extend more credit to businesses that are on the frontier of combating the epidemic, businesses in the hard-hit sectors as well as SMEs. The lending rate should be at least 25 base points lower than the Loan Prime Rate (LPR) in the same period. Other financial institutions in Shanghai are encouraged to do the same. Financial service green access will be established to provide convenience for relevant enterprises that produce and transport key supplies for the epidemic prevention and control. Financial institutions are encouraged to utilize platforms such as the Shanghai Bank-Tax Platform and the Shanghai Big Data Inclusive Finance Application to adjust KPI and NPL (non-performing loans) tolerance so as to provide more credit support for SMEs. 

xv. Bigger support to enterprises that have liquidity difficulties

Efforts will be made to increase credit and loan support to enterprises from the hardest-hit industries in the NCP outbreak like tourism, accommodation and catering, wholesale and retail, transportation, logistics and warehousing, culture and entertainment, convention and exhibition, and etc. Enterprises with difficulties in repaying the due loans will be supported by modifying repayment schedule, extending repayment period and renewing loans without principal repaid, in an effort to make sure that the loans won’t be suspended, withdrawn or postponed. Online loan renewal mechanism will be established in a faster manner. In the cases of overdue loans caused by the epidemic, reasonable adjustment shall be made to related tiered rating standards. 

xvi.  Stronger support for financing guarantee

Shanghai's policy fund for financing guarantee will be given full play to ensure that financing guarantee loans added in 2020 will increase by more than 3 billion RMB over the previous year. For key enterprises producing epidemic prevention materials and for those micro, small and medium-sized enterprises severely affected by the epidemic, the policy fund for financing guarantee shall continue to play a bigger role. The rate of financing guarantee fee for new loan applications from micro, small and medium-sized enterprise is to be reduced to 0.5% per year, the re-guarantee fee rate is to be cut by half, and the fee for guarantee loans to start-ups continues to be exempted.