61. Is there any financing guarantee support for enterprises playing key roles in the epidemic prevention and control and the medium, small and micro enterprises?

A: The Shanghai Administration Center of Policy Financing Guarantee Funds for SMEs actively coordinates relevant financial institutions in Shanghai so that financing guarantee services are provided to enhance credit for enterprises. Financial institutions are encouraged to increase credit support for the medium, small and micro enterprises, so as to ensure that loans are not suspended, withdrawn, or postponed.

The medium, small and micro enterprises which are severely affected by the epidemic and have difficulties in repaying debts when due, but have good business prospects, will enjoy loan renewal without the repayment of principal and roll-over credit on the basis of strict examination and verification. For those who have already enjoyed the fiscal interest subsidy, the fiscal interest subsidies will be extended accordingly.

For key enterprises in the epidemic prevention and the medium, small and micro enterprises severely affected by the epidemic, the Shanghai Administration Center of Policy Financing Guarantee Funds for SMEs will lower the financing guarantee rate to 0.5% per year for the new applicants (including roll-over loans without repayment of the principal upon maturity). The re-guarantee rate will be reduced by half. The service charge for startup guarantee loans will continue to be exempted.

62. For enterprises that are unable to repay debts due to epidemic impact, how to make sure their credit is not affected?

A: Enterprises that play key roles in the epidemic prevention and control are advised to negotiate a flexible and reasonable repayment extension with the lending institutions when they have temporarily lost their sources of income or failed to repay due to the epidemic impact.

The lending institutions should report the credit records of the enterprises according to the rearrangement agreed upon by the two parties.

63. How to apply for an extension when an enterprise cannot repay principals and interests on time due to the epidemic impact?

A: Upon application, banking financial institutions should offer temporary extension arrangements for the loan principals that are due since Jan 25, 2020 and for the loan interests that ought to be paid between Jan 25, 2020 to Jun 30, 2020 for the medium, small and micro enterprises with difficulties (including small and micro business owners and self-employer).

Payment of principals and interests can be extended to Jun 30, 2020 to the maximum without penalty interest.

According to the actual situation, financial institutions in banking sector should negotiate specific extension arrangement with the medium, small and micro enterprises that are severely affected by the epidemic and expecting a long recovery cycle, but have sound business prospects.

64.When negotiating with lending institutions the rearrangements of debt repayment, what materials should be prepared by income-short enterprises？

A: Different lending institutions might need different materials. Please consult individual institution for specific requirements.

Generally speaking, the materials include bank account statement, corporate financial report and letter of commitment of the legal representative of the enterprise on authenticating of the materials submitted.

IV. Support for Enterprises to Stabilize Employment

65. Enterprises are now facing the most stressful cash flow crunch. But when will the social security expense already deducted in February be returned?

A: "Filing this month, paying next month" is the social security collection mode adopted by Shanghai. Therefore, the expense deducted in February is the one levied for January in real term.

In accordance with the national regulations, policies related to deduction and exemption of social security in Shanghai will be rolled out soon. Social security agencies will provide convenience to companies going through related procedures.

66. According to national policies, social security payment will be exempted, and housing provident fund payment will be deferred from February to June for small and medium-sized enterprises in Shanghai. However, Shanghai's 28 Policy Measures include no such policies. How will Shanghai's policies connect with the national ones in this regard?

A: On Feb 7th, Shanghai unveiled Shanghai's 28 Policy Measures. On Feb 20th, Notice on Phased Reduction of Companies' Social Security Contribution was issued by Ministry of Human Resources and Social Security, Ministry of Finance, State Taxation Administration. The Notice stipulates that in all provinces except Hubei, the endowment insurance, unemployment insurance and employment injury insurance that are paid by employers of the medium, small and micro enterprises can be exempted for a period of no more than 5 months. Insurance paid by employers of large-sized enterprises can be reduced by half for no more than 3 months. Specific implementation measures will be issued by provinces, autonomous regions and municipalities directly under the central government.

Shanghai's policies in relating to social security premium exemption and reduction are formulating and will soon be issued. The policies that have been announced will continue to be implemented.

67. Which enterprises can enjoy refund of unemployment insurance?

A: Enterprises that have no layoff or few layoffs, and have paid insurance for more than 1 year are entitled to a refund of 50% of the total actual unemployment insurance paid by the enterprises in the previous year.

68. In comparison with the past, is there any new regulation regarding this policy of unemployment insurance refund?

A: This policy has expanded the scope of beneficiaries for the medium, small and micro-sized enterprises.

The policy threshold is lowered for the medium, small and micro-sized enterprises with a relaxation of application requirement. The required layoff rate should be no higher than 5.5%, which is the control target of last year's national urban surveyed unemployment rate. And the required layoff rate for enterprises with fewer than 30 employees should be no more than 20% of the total workforce.

69. How to apply for "extension of social security payment"?

A: Companies can pre-apply via "12333" labor security hotline, or through the official account "上海社保" (Shanghai Social Security) in Wechat. Basic information and contact number of the insured units are required during pre-application.

Within three working days after the successful submission of the pre-application, the social security agency will contact the contact person through the reserved telephone number to learn about the impact of the epidemic and confirm the reason for the application of the extension. The enterprise will then submit the application for delayed payment of social security with official seal, and the application can be submitted to the social security agency by registered mail or express delivery. After receiving the written application, the social security agency will give final feedback by telephone within three working days.

70. What are the adjustments to employees' medical insurance premium rate in Shanghai?

A: From February to December 2020, the payment rate for employees' medical insurance (including maternity insurance) is to be reduced by 0.5%, from 10.5% to 10%. The payment rate of basic medical insurance for flexible employment personnel is to be lowered from 11.5% to 11%.

The medical insurance and social security agencies are promptly implementing the policy so that it can benefit the insured units when paying the insurance in February.