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China will further bolster its small and micro businesses with more financial measures to increase vitality of the economy,
according to a decision made at a State Council executive meeting chaired by
Premier Li Keqiang on Wednesday.
In order to boost policy support and encourage financial institutions to step up financial services, credit ceiling of VAT
exemption for interest derived from bank lendings to small and micro
businesses cheap nike air max shoes , farmers and self-employed will be expanded from 100,000 yuan to 1 million yuan between Dec. 1, 2017 and Dec. 31, 2019.
The stamp tax exemption for the borrowing contracts of small and micro businesses and the VAT exemption for those with a monthly
sales volume of less than 30,000 yuan will be extended to 2020.
More efforts will be made to put the inclusive finance departments of state-owned banks in place at grassroots levels.
Commercial banks will enjoy cut in reserve requirement ratio if their total or
percentage of increase in individual loans of less than 5 million yuan to small
and micro businesses cheap nike air max , farmers, people under poverty line, students and guaranteed loans for startups
reach a certain standard.
"The small and micro businesses have been a strong pillar for employment, offered strong support for large and medium-sized
enterprises, and increased vitality of the society cheap air max shoes ," Li said. "We should encourage financial institutions to lower their footing and strengthen capacities to serve the real
economy."
"Financial resources should flow more to the real economy, especially to agriculture and small and micro businesses to ease their
credit crunch and high financing cost," he said.
They have played a pivotal role in creating new jobs, as each small and micro enterprise can help create eight new jobs and each
self-employed business creates 2.8 jobs, according to the National Bureau of
Statistics.
The meeting decided that the government will make greater efforts to develop governmental financing guarantee and re-guarantee
institutions cheap air max , with a national financing guarantee fund also in the pipeline. Venture capital funds
will be encouraged to devote more investment to small businesses in their early
periods.
"The development of inclusive finance should be a priority, so that the small and micro businesses and other weaker links can
receive consistent support. The financing of small and micro businesses is a
global challenge. But it is of major importance, and should be highly
prioritized." Li said.
"We managed to make some progress over the years, reaching targets of growth rate of bank lending to small and micro businesses no
lower than lending across the board, number of individual loans and rate for
loan approval no lower than the same period last year. Such measures have
increased SME's chance of survival," he said.
Policies for small and micro businesses should cover self-employed businesses and farmers as well to increase policy effectiveness,
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