The Beijing municipal government issued a circular on Wednesday to offer support to small- and medium-sized enterprises during the fight against the novel coronavirus outbreak.

These measures aim to reduce the burden of companies, offer them financial support, and safeguard their stable operation.

State-owned proprietors should exempt small and medium-sized companies from paying rent in February if the companies have maintained or suspended operations as required without laying off a large number of employees, according to the circular. Their rent will be subsidized by the government at the municipal or district level.

Companies that are severely impacted by the outbreak or have maintained operations to assist people’s daily lives will receive subsidies for as much as 70% of their rent and the related expenses. They include chain restaurants, grocery stores, and convenience stores.

Companies that have difficulty paying taxes can receive extensions of up to three months，and high-tech companies in Zhongguancun can get research subsidies of up to 200,000 yuan.

In terms of financial support, more bank loans and lower financing costs will be offered. The lending growth of major state-owned banks to small and micro-businesses should be no lower than 20%, the circular said.

The circular also required ramped up financial support to firms that face temporary difficulties amid the novel coronavirus outbreak, vowing that the loans will not be suspended or withdrawn. Those having difficulties with repayment will have their loans extended or renewed, according to the circular.

Meanwhile, other measures will be put in place to help companies to maintain operations. For instance, small- and medium-sized companies that keep or increase its numbers of employees will enjoy 30% to 50% of subsidized social insurance premiums.

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