City spending US$46b to get small businesses back on their feet

Zhu Shenshen
Shanghai is spending big money and assigning thousands of personnel to get the economy moving again after the pandemic.
Zhu Shenshen

Shanghai is stepping up bailout measures for pandemic-affected small businesses – worth more than 300 billion yuan (US$46.2 billion) in 2022.

The help includes rent reduction, tax rebates, incentives for maintaining jobs, special loans and a new team of 6,000 personnel to help companies, according to officials from several local bureaus including the Shanghai Commission of Economy and Informatization.

Shanghai already released 50 measures to boost the economic recovery and aid small business on May 29. This is a follow-up to push the implementation of those strategies.

Between April 1 and May 31, additional tax rebates worth 46.6 billion yuan were paid to 6.2 million taxpayers, including many small businesses.

Banks have set up special post-pandemic loans valued at 500 billion yuan, with low or zero guarantee fees.

State-owned property owners are encouraged to speed up rent exemptions for small businesses.

These policies are expected to boost cash flow and incentives for jobs and getting businesses back to normal.

In June and July, about 6,000 people have and will be dispatched to deliver these bailout measures and help small businesses apply for help.

They will offer assistance on rent reduction and exemptions, social security deferral, financial support, financing guarantees, jobs, logistics and foreign investment.

Many small business owners don't know where to go for help, said restaurant owner Lin Ruojian, who is still waiting for dine-in service to reopen in Shanghai.

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