Lin-gang Special Area delivers million subsidies to firms
As of March 17, 336 enterprises in the Lin-gang Special Area of the China (Shanghai) Pilot Free Trade Zone had received outbreak subsidies from the government, totaling more than 220 million yuan ($31.1 million).
"The subsidy came at a perfect time for us" said Wu Tingting, assistant general manager of Shanghai Beihui Auto Parts Co Ltd, which just received 200,000 yuan in subsidies.
Shanghai Beihui produces auto parts for Volkswagen, General Motors, and other auto manufacturers. The industry has been in a slump since last year, and the outbreak has only made matters worse.
"Payments for goods are not reaching our account in time, making our capital chain very tight, but we still need to guarantee our employees' salaries and pay other expenses necessary for the company's operation" said Wu.
She also added, "We submitted an application after learning of Lin-gang's subsidy policy, and I was shocked to see we could receive the subsidy after just three working days."
Many other enterprises in the Lin-gang Special Area also received outbreak subsidies from the government.
For example, Dayin Lakeside, the first bookstore to open in the Lin-gang Special Area, received 200,000 yuan in subsidies. Shanghai Supercomputer Technology Co Ltd received an online staff training subsidy of more than 30,000 yuan. The Viennese Hotel in the Lin-gang Special Area received a rent subsidy. Seven enterprises in the Lin-gang Science and Technology Innovation Center received special support funds. And there are still enterprises applying for the fund.
The Lin-gang Special Area Administration released the measures on Feb 16 to alleviate the impact of the novel coronavirus pneumonia outbreak on local companies.
The subsidy has nine directives: to help expand the capacity of enterprises involved in the production of epidemic prevention materials, help enterprises tackle key problems in science and technology, subsidize key businesses, reduce rent, reduce interest on loans, increase financial support for credit risk compensation, offer special assistance funds, offer subsidies for online vocational training for workers during the epidemic, offer rewards for online recruitment during the epidemic, and offer a one-time subsidy for quarantine accommodations.
Subsidies began being declared only four days after the policy was announced, and one company received the subsidy just several hours after applying.
"We will allocate subsidies as quickly as possible to help enterprises survive these difficult times," said an official of the Lin-gang Special Area Administration.