“If college students want to start a business, they can borrow 100000 to 500000. If they fail to start a business, the government will compensate for the loan less than 100000, and 80% of the loan more than 100000.”
On the morning of February 17, the national development and Reform Commission held a press conference to introduce the progress of supporting high-quality development and building a common prosperity demonstration zone in Zhejiang Province. At the meeting, Chen Zhong, deputy director of the Department of human resources and social security of Zhejiang Province, made this statement, which aroused thousands of waves with one stone.
When was the policy introduced? Does compensation mean “no need to pay back”? How to define the scope of College Students’ entrepreneurship? In a heated debate, many doubts remain to be solved.
The reporter’s inquiry found that the core content of this policy expression was actually found in documents as early as seven years ago. In the “original source” – the opinions of Zhejiang Provincial People’s Government on supporting mass entrepreneurship and promoting employment, it also defines a complete set of application process and verification mechanism. There are detailed requirements for compensation and other subsidy policies, and not everyone can apply.
The policy has a long history and the path is constantly explored
The act of “government compensation”, which has been hotly discussed as a “New Deal”, has actually been practiced in Zhejiang for a long time.
The reporter checked the official website of Zhejiang provincial government and found that the subsidy policy of “entrepreneurship guaranteed loan” was first seen in the opinions of Zhejiang Provincial People’s Government on supporting mass entrepreneurship and promoting employment issued on July 21, 2015.
According to the above opinions, college students and urban and rural workers who have entrepreneurial requirements and have certain entrepreneurial conditions but lack entrepreneurial funds can apply for a loan of no more than 300000 yuan if they establish individual industrial and commercial households (including recognized online entrepreneurship, the same below); In case of partnership or establishment of enterprises, the loan amount may be appropriately increased.
On this basis, the opinion proposed for the first time that if the loan is less than 100000 yuan and is guaranteed by the entrepreneurship guarantee fund, the personal guarantee shall be exempted. If the loan guaranteed by the venture guarantee fund is recognized as non-performing, if the loan is less than 100000 yuan, it shall be compensated in full by the venture guarantee fund; If the loan exceeds 100000 yuan, 80% shall be compensated by the entrepreneurship guarantee fund.
After the issuance of the above-mentioned guiding opinions, Zhejiang subordinate cities also began to issue supporting implementation rules one after another. For example, Hangzhou human resources and Social Security Bureau issued the measures for the administration of Urban Entrepreneurship guaranteed loans in September 2016.
According to the management method, the business guarantee loan is divided into two categories: the first category is loans to college students, graduates who have graduated from 5 years (including), unemployed persons registered in the urban registered residence, persons with employment difficulties (including disabled persons), and soldiers who have returned to work in cities and towns, and are guaranteed by the venture guarantee fund or the entrusted guarantee institutions and are exempt from the request for anti guarantee loans. The second category refers to the loans guaranteed by mortgage, pledge, guarantee and other means (class II loans).
if the borrower fails to repay the loan in full and on time after the loan expires, the guarantee fund shall compensate in full within one month for the class I loan that is more than three months overdue and the loan amount is less than 100000 yuan (including the interest during the loan period, excluding the overdue interest and penalty interest, and the municipal and district guarantee funds shall share 50% respectively).
The rules are not new, but the ideas are always new. The Zhejiang provincial government has been exploring the way to find a balance between “tolerating entrepreneurial failure” and “drilling policy loopholes”.
On April 8, 2020, Zhejiang Province issued a public announcement on soliciting the opinions of the general office of Zhejiang Provincial People’s Government on further stabilizing employment, and proposed to strengthen the implementation of entrepreneurship guarantee loan policy. It is further clarified that if the borrower fails to repay the entrepreneurship guarantee loan in time due to the impact of the epidemic, the borrower can resume normal repayment within 30 days after the elimination of the epidemic and continue to enjoy the original relevant policies.
“compensation” is not “telling the truth”
Another focus of the policy is whether “government compensation” means “full disclosure” and “no repayment”?
The answer is naturally No.
In a document entitled “measures for the implementation of entrepreneurship guarantee loans in Zhejiang Province (for Trial Implementation)” issued in 2016, detailed provisions are made on the conditions and purposes of entrepreneurship loans, loan amount, interest rate and term, loan guarantee and loan management, and many of them involve “compensation”.
For example, the document explains that “key groups” can apply for class I and class II loans for college students, college graduates within 5 years of graduation, people registered as unemployed for more than half a year, people with employment difficulties, urban Veterans and disabled persons with certificates.
in addition, Article 17 of the document stipulates that the handling bank shall still actively recover the loan after the class I loan with risk is compensated by the venture guarantee fund; The loans recovered after recovery shall be paid by the venture guarantee fund and the handling bank respectively according to the compensation proportion; If it is really impossible to recover within the specified time limit, it may be written off from the guarantee fund according to the specified procedures.
In case of overdue loans, we should also bear the corresponding credit risk.
Article 21 of the document stipulates that for overdue loans, the human resources and social security departments shall actively cooperate with the handling bank to urge the borrower to return them in time, and timely record the borrower’s bad credit in the relevant information database as the basis for whether the borrower can enjoy the employment and entrepreneurship support policies. The handling bank shall timely submit the borrower’s credit business information to the credit investigation system as the basis for whether the borrower can enjoy loan discount and other financial services.
“attracting talents” for a long time
From the perspective of effect, the policy of “putting into use” in Zhejiang has gradually “played a role”.
according to the statistics of Hangzhou employment management service center, Hangzhou issued 1.056 billion yuan of entrepreneurship guarantee loans last year, benefiting 2056 enterprises and driving 12781 jobs.
Fang Yi, CEO of Merit Interactive Co.Ltd(300766) , is also a beneficiary of Zhejiang’s entrepreneurial orientation. It is reported that he once enjoyed the entrepreneurship support policies for college students in Hangzhou. After his success in entrepreneurship, he also participated in the evaluation of many entrepreneurship and employment projects for college students as a judge.
Fang Yi said in an interview with the media: “there are strict conditions for the evaluation of College Students’ Entrepreneurship funding. The evaluation experts often come from investment industries and related industries, and the evaluation mechanism is relatively transparent and perfect. From my point of view, the effect of policy implementation is very good, and many College Students’ entrepreneurs have received practical help.”
From a macro perspective, in 2021, the development and Reform Commission of Zhejiang Province and the Organization Department of the provincial Party committee jointly issued the 14th five year plan for talent development in Zhejiang Province (hereinafter referred to as the plan). The plan proposes to build Zhejiang into an influential and attractive global talent reservoir, a source of innovation and a leading demonstration area for the construction of a strong talent province by 2025, and puts forward many specific goals and measures, including——
The total number of talents increased steadily. By 2025, about 200 global top talents will be introduced, more than 5000 leading talents will be gathered, and more than 5 million college graduates will be newly employed. The total number of human resources in the province reached 16.5 million.
We will accelerate the improvement of the talent structure. By 2025, there will be more than 185 R & D personnel per 10000 labor force, the proportion of highly skilled talents in skilled talents will reach more than 35%, and the proportion of professional and technical talents with senior professional titles will reach about 8%.
Talent efficiency should be brought into better play. By 2025, the contribution rate of science and technology will reach more than 70%, the number of high-value invention patents per 10000 people will reach 17, the added value of high-tech industries will account for more than 65% of the industries above the designated size, the average annual growth of all staff labor productivity will be more than 6%, and the number of enterprises listed on the science and Innovation Board will rank first in the country.
The talent environment continues to be optimized. By 2025, the proportion of human capital investment in regional GDP will reach more than 20%, the high-level productive service industry will basically meet the needs of talent development, the process of talent entrepreneurship and innovation will be comprehensively accelerated, and the talent service system will be more optimized.
In terms of specific implementation, one city and one policy in all parts of Zhejiang have made frequent real moves, which really solves the “worries” for talents.
For example, Ningbo recently issued the detailed rules for the implementation of opinions on financial support for talent entrepreneurship and innovation in Ningbo (for Trial Implementation), implementing various financial support measures for talent entrepreneurship and innovation; Zhoushan City issued the implementation opinions on accelerating the construction of a talent port with marine characteristics in the new era (hereinafter referred to as the opinions), and took out “real gold and silver” to help the real economy and introduce young talents; Shaoxing City will introduce high-level talents and give a maximum room ticket subsidy of 5 million yuan; Wenzhou has also issued relevant policies to give 10 subsidy projects such as employment subsidy, transportation subsidy, entrepreneurship subsidy, social security subsidy, provident fund subsidy and rental subsidy to new full-time college graduates who come to Wenzhou for employment and entrepreneurship.
