Provide targeted loans for SMEs to resume work and production. 

Guangxi Autonomous Region launched the “Loan for Resumption of Work,” which provides the financial support for those, especially the SMEs, to restart their operation and production. The first 20-billion-yuan rescue fund for SMEs in Wuhan is being raised urgently, and eligible SMEs will be provided with one-year interest-free loans to overcome their difficulties in liquidity. For small and micro enterprises that have resumed or plan to resume work during the epidemic, Sichuan Province has also launched targeted loans, and 400 SMEs that resumed their work and production have received the loans in a total of 1.3 billion yuan.

The CBIRC urges banks to support private small and micro enterprises in the principle of “increasing the volume and lowering the cost.” Besides, Beijing provided a 2% subsidy to the financial institutions that delivered the first credit loans to SMEs during the epidemic. And financial institutions that suffer credit defaults can be subsidized at 20% to 70% of the principal.

Defer the repayment of loans. 

The CBIRC, the Ministry of Finance, and the other five departments jointly proposed that epidemic-hit SMEs and micro firms, including small business owners and individual household businesses, can make applications with banks to defer repayment of principal and interest expenses payable from January 25th to June 30th, 2020. Overdue loan repayments in the period will not be subject to penalties.

Innovate financial products and services. 

Cooperation is encouraged among SMEs, digital service providers, and financial institutions to build service systems on corporate credit monitoring, intelligent supply-demand matching, and big data risk control so that SMEs can obtain low-cost financing efficiently. Shanghai Big Data Center, Shanghai Administration Center of Policy Financing Guarantee Fund for SMEs, together with 15 banks to sign an agreement on the “Big Data Inclusive Financial Guarantee Cooperation Program.” “Data + Guarantee + Bank” model is used to help SMEs get quick access to finance. Sichuan Province has launched a “SMEs Assistance Platform for Resuming Work and Production,” integrating several banks in one digital financial service platform to provide efficient and convenient online loans service for the virus-hit SMEs.

Encourage financial support from the industrial chain.

The CIBRC proposes to support core enterprises to get access to finance through credit, bonds, etc., and help SMEs in the upstream and downstream of the industry chain to solve the problem of liquidity shortages. Large enterprises and leading enterprises are encouraged to use the obtained financing to pay cash to the SMEs in the form of advance payments.

Set up "Sci-Tech Loan"  to support technology-based SMEs.

The special funds of credit risk compensation for technology based SMEs would be in full use. The science and technology loan reserve has been established in Henan Province, which is used to compensate up to 60% of the actual loss incurred to the cooperative banks of the “Sci-Tech Loan” business. This is a good way to encourage financial institutions to lend to technology-based SMEs.