Implementation regulations on financial intermediary leveraged lending
source:www.invest-lg.com Release time:2012年3月9日

Article 1To solve the problem of financing difficulties of the enterprises within the area and maximize the fund’s role of guidance, motivation and leverage in economic development, the detailed implementation rules are formulated according to the relevant provisions in “Announcement of print and distribution of temporary measures to manage economic development funds in Longgang district” (Longgang (2006 ) No. 95),based on the actual situation.

Article 2 The annual support scale will be determined by the annual district government funds management conference ( hereinafter referred to as joint meeting).

Article 3 Support mode

According to the relevant provisions in “Longgang area small and medium-sized enterprise loan cooperation agreement” signed by the district government and financial institutions, financial institutions issue the relevant enterprises loan voucher, to be audited by the finance department and submitted to deputy chief of the district government who is in charge of Finance for approval. The support funds will be allocated to the financial institutions according to the agreed percentage of the credit amount (less than 30%) with a maturity of 2 years. For cases of bad debts, financial institutions issue bad debt certificate and the industrial competent departments give explanations of the operation of the support enterprises under detail tracking, to be audited by the district finance department and submitted for approval to deputy chief of the district government who is in charge of Finance, then financial institutions can use support funds to cancel the bad debt after validation. When the bad debt recovers totally or partially, financial institutions must promptly notify the finance department, and the corresponding funds should be returned to finance account.

 

Article 4 Support range

(Ⅰ) Small and medium-sized industrial enterprises, large and medium-sized commercial chain enterprises, large and medium-sized logistics enterprises in accordance with the Longgang district industrial development orientation and the industrial planning, whose industrial and commercial registration and tax registration places are in the Longgang area and with an annual tax revenues of the past year ( excluding exempt tax ) exceeding 50 thousand yuan.

Article 4 Support range 

The standard reference for division of large, small and medium-sized enterprises is based on “Statistics on partitioning large, small and medium-sized enterprises (Provisional)" (the word [ 2003 ] No.17) to perform.

(Ⅱ) Companies of any of the following kinds will not receive support fund:

1 Companies suffering loss for the recent 3 consecutive years;

2 Companies that have violated the relevant laws and regulations, investigated and dealt with by the law enforcement departments in the recent 3 years; 

3 Companies dealing with major litigation or arbitration which may affect their normal business activities;

 4 Companies with bad record in the customs, industry, finance, human resources, water environmental protection, safety, fire control, market regulation, taxation and other departments or financial institutions; 

 5 Companies that does not submit data to the statistical departments in accordance with the provisions or report fake data; 

 6 Companies that provides false information;

7 Companies of the low-end industries according to Longgang provisions; 

  

 Article 5 Industrial enterprise support conditions and standards

(Ⅰ) Enterprises meeting one of the following conditions

 

 

1The recommended support loan amount for a single logistics project should be no more than 10 million yuan; 

2 The recommended support loan amount for a single logistics enterprise should be no more than 20 million yuan.

 

 Article 8 Materials to be submitted for application of the financial intermediary lever lending support

 

 (Ⅰ) Longgang district economic development financial intermediary lever lending support application form;

 (Ⅱ) Business license and copies of state tax, local tax registration certificate (with an annual review record of the last year); 

 (Ⅲ) Enterprise certificate of tax payment of the last year;   

 (Ⅳ) One copy of the ID card of the legal representative ( with signature); 

 (Ⅴ) Enterprise introduction to;

 (Ⅵ) The feasibility study report of the project (not a must for enterprises using the loan as circulating funds, but explanation should be made); 

 (Ⅶ) A audit report of the enterprise of the previous year issued by a CPA firm;

(Ⅵ) The feasibility study report of the project (not a must for enterprises using the loan as circulating funds, but explanation should be made); 

(Ⅷ) Copies of the relevant qualification certificate of the project (not a must for production projects that have not obtained relevant qualifications, but explanation should be made; enterprise shall provide the complete relevant qualification certificates);

 (Ⅸ) Information on financial aid from the city, district government in recent 3 years; 

(Ⅹ) Other materials considered as necessary by the district economy department.

The above materials are presented in quadruplicate. Where a copy is required, the original shall be checked at the same time. The above materials shall be sequentially compiled and stamped with the official seal. 

Article 9 The district economic component department, as the accepting department in our region for industrial, commercial, logistics enterprises’ application for financial intermediary leverage lending support, is responsible for formal examination of the integrity of the application materials. For application with complete materials, acknowledgment of acceptance will be issued; for application with incomplete materials, a return receipt will be issued, indicating reasons for rejection as well as the materials needed to be supplemented; for application unqualified for support, a return receipt will be issued, specifying reasons for rejection.

Article 10 Enterprises of cultural industry, tourism industry, circular economy, the community stock cooperation and other related areas can also consult this implementation rules for financial intermediary lever lending support. The relevant government departments are the accepting departments for the application of enterprises of the corresponding field for financial intermediary leverage lending support.

Article 11 The district industry component department organizes expert groups to conduct regular reviews. Expert groups are employed by the industry component department from the district government expert database, composed of than 3 (including 3 ) odd amount of relevant experts. One staff from District Department of Finance and audit departments can also be employed as the members of the expert group if necessary. Review experts as a liability issue review comments in unified format with signature.

Article 12 Bureau of the district industry component department review expert comments and determine the enterprises list to be sent to area joint meeting for approval. 

Article 13 District joint meeting review expert comments and industry component departments’ opinion of validation, determined the support object.

Article 14 District finance department will publicize the planned support objects audited by the district joint conference in the news media for 5 working days.

For projects causing objections during publicity, i district industry component department shall undertake investigation 10 working days within the expiry of the publicity, and issue a written survey report.

Article 15 For projects without objection or with false objection as proved by investigation, district finance department reports them to deputy chief of the district government who is in charge of Finance and deputy chief in charge of economy for approval, issues district joint meeting summary, the list of enterprises determined by which will be recommended to the trustee bank. Trustee bank will determine the ultimate support list, and submit a written report to area financial department and industrial department. District industry component department determine the final support list based on the list by trustee bank, sign contracts of usage of funds with the support enterprises, record file, and submit confirmation to the district finance department. District Finance department allocates the support funds based on the confirmation, the trustee bank application and related documents. 

Article 16 District Department of finance, as the supervisory department for financial intermediary lever lending funds, is responsible for the supervision, examination of management and usage of funds, and for funds procedures. 

Article 17 District audit, supervision departments are responsible for supervision, examination of auditing and allocation process of financial intermediary leverage lending support funds. Ensure that the related work is open, fair and justice. 

Article 18 District industry component departments are responsible for the establishment and management of supporting enterprises (projects) files; for tracking of the usage of funds in support enterprises (projects), to ensure that a fixed sum is for a fixed purpose; for inspection and assessment of the support enterprises together with the district finance department, analysis of problems that exist in the process of usage of financial intermediary lending funds, and suggestion of relevant improvement measures. 

Article 19 Enterprises receiving financial intermediary leveraged lending funds are responsible for project implementation, ensuring that a fixed sum is for a fixed purpose, and regularly submit to the region industry competent departments the usage of funds and project progress report and other data, accept the inspection and supervision from the relevant government departments.

Article 20 For enterprises with timely repayment, a reward of 2% business grant loan, not more than 100 thousand yuan will be given. The reward funds are allocated by the finance department according to the relevant provisions. 

Article 21 Progressing and completion of projects by enterprises receiving financial intermediary lever lending funds will serve one of elements in consideration of review of district economic development capital support of the next year.

Article 22 Accountability in violation of the rules

 (Ⅰ) For enterprises providing false information, the district government will no longer accept their application of zone economic development financial support for 5 years.

 (Ⅱ) For enterprises cheating government to get the support funds, industry authorities will cancel its support qualification, and order them to return the support funds; if the circumstances are serious, their corresponding duties shall be investigated. 

 (Ⅲ) For the related staff in region industry departments who breach privilege, forget duties, play favouritism and commit irregularities during the management and supervision, district departments of supervision, auditing, finance will deal with them in accordance with relevant provisions; those suspected of a crime will be transferred to judicial organs.

 (Ⅳ)For appraisal experts who utilize the review opportunities to malpractice and deceit, their area economic development fund expert qualification will be; those suspected of a crime will be transferred to judicial organs. 

Article 23The related expenses for industrial component departments to undertake project evaluation, supervision and other work will be in included in department budget in accordance with the provisions. 

Article 24The region economy component departments shall be responsible for the interpretation of the detailed implementation rules.

Article 25 These Rules shall come into force upon promulgation, valid for a period of 5 years. The original “Implementing Rules for Tentative Procedures for Longgang District Economic Development Fund (manufacturing, commercial, logistics industries) Management” (Longgang (2007) No. 68 ) will be abolished at the same time.

 

 1 Enterprises of strategic emerging industries, high-tech industries, and the equipment manufacturing industry or of the encouraged industries under Shenzhen city industry guidance catalogue;

 2 Enterprises belonging to the permitted industries under Shenzhen city industry guidance catalogue, and with independent brand or independent intellectual property rights.

 

 (Ⅱ) Support standard 

 1 The recommended support loan amount for a single medium-sized enterprise should be no more than 20 million yuan; 

 2 The recommended support loan amount for a single small enterprise should be no more than 10 million yuan; 

 3The annual recommended small industrial enterprises under support should be not less than 50% of the total recommended industrial enterprises in principle.

 

Article 6 Business enterprise support conditions and standards

 

 (Ⅰ) Projects meeting one of the following conditions:

1 Major construction projects in the city, district;

 2 Projects to build or expand large-scale professional wholesale markets, retail chain enterprises, brand stores;

 3 Headquarter building projects of large commercial chain headquarters moved to Longgang district; 

 4 Key industrial parks and large community-based supporting commercial projects

 

 (Ⅱ) Support standard

 

1 The recommended support loan amount for a single commercial project should be no more than 10 million yuan;

2 The recommended support loan amount for a single commercial enterprise should be no more than 20 million yuan;

 Article 7 Support conditions and standards for logistics enterprise

 

 2 Information service platform construction projects of the logistics park confirmed by municipal government or above;

 3 The demonstration project applying radio frequency identification ( RFID ), intelligent transportation system ( ITS ), cloud computing and other advanced technologies.

 

 (Ⅱ) Support standard

 1 Major construction projects in the city, district;

 8 Companies that has enjoyed district science and technology development fund or district economic development fund, discount support for technical reformation the same year.