Helping 'little giants' critical for growth
The Songjiang government held an online financing conference on May 13 for the district's technologically advanced small and medium-sized enterprise – or the "little giants" of technology – to help them get financial support from banks.
The event attracted 376 enterprises.
There are 40 state-level technologically advanced small and medium-sized enterprises in the district – accounting for 15.27 percent of Shanghai's total, and ranking the district No. 2 – 374 city-level little giants and 539 at district level.
These little giants mainly involve industries such as high-end equipment manufacturing, biomedicine, smart manufacturing, and advanced materials.
Such enterprises are part of the backbone of the prosperous development of the district's growing economy.
"The aim of holding such an event at this special time is to help alleviate the financial difficulties faced by many enterprises," said Chen Chao, director of the Songjiang Commission of Economy.
Besides holding the online financing event, the government also called for concerted efforts from key departments.
The Songjiang Bureau of Finance provides financing guarantees for 1,200 small and medium-sized enterprises in the district.
With the bureau's help, the financing process is simplified and the time needed to get a loan is shortened.
If enterprises have prepared all documents needed, they will get their loan from the banks within two weeks at an interest rate as low as 3.65 percent.
The Songjiang Bureau of Intellectual Property encourages more little giants to apply for intellectual property pledge financing and encourages commercial banks to speed up the handling of such loans.
"Enterprises with patents (trademarks) can select suitable banks and products according to the information forms of intellectual property financial service institutions," said Jia Li, deputy director of the bureau.
"After the signing of the intellectual property pledge loan contract, both parties should go to the intellectual property management department to register the pledge right (online), and the patent right pledge registration time is seven working days."
In 2021, the amount of intellectual property pledge financing registration involving patents and trademarks in Songjiang District is expected to be nearly 390 million yuan (US$58.3 million) – the highest for several years.
The Songjiang Taxation Bureau has introduced a series of supportive polices to reduce the tax burden for little giants.
"Technologically advanced little giants are the group of enterprises that the taxation department pays much attention to and provides special services for," said Wu Weigang, deputy director of the Songjiang District Taxation Bureau.
Small, medium and micro enterprises are the biggest beneficiaries of the supportive policy.
Small-scale businesses are exempt from value-added tax.
For example, from April 1 to December 31, small-scale value-added tax taxpayers normally subject to the 3 percent rate on taxable sales are exempt from value-added tax.
The tax on pre-paid value-added tax items normally subject to a 3 percent rate has also been suspended.