Chapter One Total then
Article 1: In order to promote the healthy development of small and medium-sized enterprises (SMEs), standardize the management of special funds for SME development, and enhance the efficiency of fund utilization, these Measures are formulated in accordance with the Budget Law of the People’s Republic of China and relevant provisions on fiscal budget management.
Article 2: The Special Fund for the Development of Small and Medium-sized Enterprises (hereinafter referred to as the “Special Fund”) is a fund allocated from the central government’s budget in accordance with the "Law of the People’s Republic of China on Promoting the Development of Small and Medium-sized Enterprises." It is primarily intended to support SMEs in areas such as structural adjustment, industrial upgrading, specialized development, collaboration and supporting roles with large enterprises, technological advancement, integrated resource utilization, brand building, as well as the development of an SME credit guarantee system and market expansion—thus contributing to the overall improvement of the SME development environment. (This fund does not include the Technology Innovation Fund for Science and Technology-based SMEs.)
Article 3: The criteria for classifying small and medium-sized enterprises shall be implemented in accordance with the “Interim Provisions on Standards for Small and Medium-Sized Enterprises” jointly issued by the former State Economic and Trade Commission, the former State Planning Commission, the Ministry of Finance, and the National Bureau of Statistics (Guo Jing Mao Zhong Xiao Qi [2003] No. 143).
Article 4: The management and use of special funds shall be consistent with the state’s macroeconomic policies, industrial policies, and regional development policies. They shall adhere to the principles of openness, impartiality, and fairness, and ensure that the special funds are used in a standardized, safe, and efficient manner.
Article 5: The Ministry of Finance is responsible for the budget management, project fund allocation, and fund disbursement of special funds, and shall conduct supervision and inspection on the use of these funds.
The Ministry of Industry and Information Technology is responsible for determining the annual priorities and key areas for special fund support, conducting reviews of submitted projects in collaboration with the Ministry of Finance, and supervising and inspecting the implementation of these projects.

Chapter Two Support Methods and Amounts
Article 6: The special funds shall be provided through non-repayable grants, interest subsidies on loans, and capital injections. Project entities may choose one of these support methods but are not permitted to apply for special funds using multiple methods simultaneously.
Fixed-asset construction projects primarily funded by the entity’s own capital generally adopt a grant-based funding approach; fixed-asset construction projects primarily financed by loans from financial institutions generally adopt a loan interest subsidy approach.
The project for building a credit guarantee system for small and medium-sized enterprises generally adopts a grant-based funding approach; in special circumstances, capital injection may be used instead.
Projects such as market development generally adopt a grant-based funding approach.
Article 7: The amount of grant funding provided free of charge from the special funds shall, in general, be capped at RMB 3 million per project.
The amount of interest subsidy for special-purpose loans is determined based on the loan amount for the project and the prevailing loan interest rate published by the People's Bank of China. The subsidy period for each project generally does not exceed two years, and the maximum subsidy amount per project does not exceed 3 million yuan.
Article 8: Projects that have already received financial support from the central government through other channels will no longer be eligible for special funding.

Chapter Three Application for project funding
Article 9: Enterprises or organizations applying for special funds must simultaneously meet the following eligibility requirements:
(1) Possessing independent legal personality;
(2) Sound financial management system;
(3) Good economic benefits;
(4) Good accounting credit, tax compliance credit, and banking credit;
(5) The proposed project aligns with the annual support priorities and key areas of the special funds.
Article 10: Enterprises or organizations applying for special funds shall simultaneously provide the following materials:
(1) A copy of the corporate license and the articles of association (photocopy);
(2) Production and business operations or business development status;
(3) The accounting statements and audit report for the previous year, audited by an accounting firm (photocopy).
(4) Other materials that need to be provided.

Chapter Four Application, review, and approval of project funding
Article 11: The financial departments and the corresponding small- and medium-sized enterprise administration departments of each province, autonomous region, municipality directly under the central government, and city separately listed in the national plan (hereinafter referred to as the provincial financial departments and the provincial SME administration departments) shall be responsible for the application and review of project funds within their respective regions.
Article 12: The provincial-level SME administration department, in coordination with the同级财政 department, shall publicly organize the application process for project funds within its jurisdiction and review the eligibility criteria and relevant documentation submitted by applicant enterprises.
Article 13: The provincial-level SME administration department, in conjunction with the同级财政 department, shall establish an expert review system and organize experts from relevant fields such as technology, finance, and marketing to review the applicant projects in accordance with the provisions of Chapter III of these Measures and the support directions and priorities for special funds in the current year.
Article 14: The provincial finance department, in coordination with the counterpart SME administration department, shall determine the projects to be submitted based on the expert review opinions, and within the prescribed time frame, submit the “Application for Special Funds for SME Development,” the draft of the expert review opinions, and the project funding application report to the Ministry of Finance and the Ministry of Industry and Information Technology.
Projects applying for special funds should be ranked in order of their importance.
Article 15: The Ministry of Industry and Information Technology, in conjunction with the Ministry of Finance, will review the application reports and project details submitted by various localities and formulate a project plan.
Article 16: Based on the reviewed project plans, the Ministry of Finance shall determine the method of financial support for the projects, approve the fund utilization plan, allocate budgetary indicators for project expenditures to the provincial-level finance departments, and disburse special funds promptly in accordance with budgetary regulations.
Article 17: After receiving the special funds, enterprises shall carry out financial processing in accordance with the relevant provisions of Article 20 of the “General Rules for Enterprise Financial Management” (Ministry of Finance Order No. 41).

? Chapter Five 　Supervision and inspection
Article 18: The provincial finance department is responsible for managing and supervising the use of special funds; the provincial administration for small and medium-sized enterprises is responsible for managing and supervising the implementation of projects. The offices of the Ministry of Finance’s fiscal inspectors stationed in various localities shall conduct irregular inspections and supervision over the allocation and use of special funds as well as the implementation of projects.
Article 19: Enterprises undertaking fixed-asset investment projects shall, within one month after the completion of the project, submit to the provincial-level financial authorities and the SME administration department at the same level a report on the project’s construction status and the use of special funds. For projects that cannot be completed on schedule, the enterprises must provide in writing, prior to the originally scheduled completion date, an explanation of the reasons for the delay and an estimated completion date.
Enterprises or organizations undertaking projects aimed at improving the development environment for small and medium-sized enterprises—such as establishing credit guarantee systems for SMEs and developing new markets—shall, before the end of the year, submit reports on the use of special funds to the provincial-level financial authorities and the SME administration departments at the same level.
Article 20: The provincial-level financial authorities, in coordination with their counterparts in the administration of small and medium-sized enterprises, shall annually summarize the overall situation of SMEs in their region regarding the use of special funds and the status of project construction, and submit the summary to the Ministry of Finance and the Ministry of Industry and Information Technology within one month after the end of the fiscal year.
Article 21: The Ministry of Finance and local financial authorities shall conduct supervision and inspection over the management and use of special funds. They may also entrust audit departments or independent auditing institutions to carry out audits.
Units or individuals that violate the provisions of these Measures by withholding, diverting, or misappropriating special funds shall be penalized in accordance with the "Regulations on Penalties and Disciplinary Actions for Fiscal Violations" (Decree No. 427 of the State Council), and the relevant persons responsible shall be held accountable.

Chapter Six ? Attached then
Article 22: Provincial finance departments and SME administration authorities may, based on local conditions, formulate specific implementation measures in accordance with these Measures.
Article 23: These Measures shall be interpreted jointly by the Ministry of Finance and the Ministry of Industry and Information Technology.

Article 24: These Measures shall take effect as of the date of their promulgation. The “Notice from the Ministry of Finance and the National Development and Reform Commission on Issuing the Provisional Measures for the Administration of Special Funds for the Development of Small and Medium-sized Enterprises” (Cai Qi [2006] No. 226) shall be concurrently discontinued.