Support businesses to access loans to pay for unemployment benefits
(Baonghean.vn) - Implementing the Government's policy of supporting employers to borrow capital to pay for work stoppages and production recovery wages for employees, the Nghe An Provincial Social Policy Bank Branch proactively approached thousands of businesses, disseminated the content of Resolution 68 and surveyed loan needs. All procedures were simplified by the Provincial Social Policy Bank with a quick and concise approach to create the most favorable conditions for businesses.
Powering businesses
Pu Mat Pharmaceutical Joint Stock Company (Con Cuong) is one of the first 7 enterprises in Nghe An province to have just received preferential loans. The company produces tea bag products (ca gai leo, vine gymnema and jiaogulan) that meet 4-star OCOP standards. Recently, the company has continued to develop an additional 10 hectares, bringing the total area of raw materials to more than 22 hectares, in which, it has cooperated with nearly 150 households, mainly ethnic minorities, to grow raw materials. The company is continuing to invest in equipment and machinery, and developing more high-end product lines to serve consumer needs.
However, previously, the company produced an average of 5,000 boxes and 1,000 bottles of various products per month; in the past 3 months, the company's production line had to temporarily stop operating, inventory was about 40%, revenue decreased by 50%. Along with that, the company was forced to cut the number of workers by half.
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| Pu Mat Pharmaceutical Joint Stock Company was given a 0% interest loan to pay 8 workers for 3 months of suspension. Photo: Thu Huyen |
The impact of the epidemic has made the circulation of goods difficult, while the company still has to continue to maintain the planting, processing and purchasing of raw materials for people. The only source of income for the unit is from product consumption, but the stagnation has made it difficult to pay salaries to workers. The preferential loan package to pay salaries to workers, with a 0% interest rate and no collateral required from the provincial Social Policy Bank has helped the enterprise a lot in paying salaries to 8 workers for 3 months. Currently, the workers have returned to work as usual. However, the enterprise hopes that this support package will pay salaries to workers for 6 months and the loan period is 24 months so that the enterprise has more time to reinvest and resume production.
Similarly, Trong Phuc Garment Company Limited (Dien Chau) has hundreds of workers, but due to the prolonged epidemic, production is difficult, and the workers' lives are in trouble. The enterprise is a branchNghe An Social Policy Bankpropaganda, guidance on borrowing nearly 800 million VND with 173 workers supported under Resolution 68/NQ-CP and Decision 23/QD-TTg. Loan capital from policies not only provides timely support to workers but also solves economic difficulties, even acts as a "lifebuoy" for many businesses.
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| Trong Phuc Garment Company Ltd. in Dien Chau district was loaned nearly 800 million VND with 173 workers supported. Photo: Thu Huyen |
Through screening, there are 386 enterprises with 4,539 employees in the area, of which 48 enterprises with 303 employees in the accommodation and food service business are heavily affected by the Covid-19 epidemic. There are 5 enterprises with 85 employees in need of loans to restore production and business. Access to this loan source will help enterprises affected by the Covid-19 epidemic in Yen Thanh district overcome difficulties and stabilize production.
Continue to remove difficulties
Through statistics and review, Nghe An province has 5,518businesses affected by Covid-19Of which, only 22 enterprises need to borrow capital with the amount of 4.3 billion VND to pay salary for suspension of work and restore production and business for 1,089 workers.
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| The Yen Thanh District Social Policy Bank transaction office signed a credit contract to support businesses in borrowing capital to restore production due to the epidemic. Photo: Thu Huyen |
According to the provincial Social Policy Bank, immediately after the policy was issued to support employers in borrowing capital to pay for work stoppages and production recovery, the unit coordinated with relevant agencies and units to propagate and disseminate the policy to employers. The unit quickly processed the documents and confirmed the list of employees participating in compulsory social insurance as a basis for lending. Currently, the branch is actively supporting and guiding businesses and employers to complete documents to promptly disburse loans, ensuring simple, timely and correct procedures.
On the other hand, Nghe An province is mostly small and medium enterprises, so the number of employees is small. For example, in Con Cuong district, according to a survey, up to 30 enterprises were affected by the Covid-19 epidemic, but only 1 enterprise received support. The reason is that many enterprises only have 1-2 employees, of which 1 employee is the business owner and is not eligible for loans to pay for salary suspension and restore production and business.
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| Con Cuong District Social Policy Bank staff discuss with businesses about raw material areas. Photo: Thu Huyen |
“With this new policy, businesses can easily accept it and banks also create conditions in the fastest time to resolve it. It is worth mentioning that currently many businesses have too few employees covered by insurance, the loan amount per employee is not much, so businesses are not interested.”
In addition, the implementation process also has problems due to changes in social distancing to prevent and fight the epidemic in the locality. It is known that many customers have completed loan procedures and are waiting for disbursement, but the locality is implementing social distancing according to Directive 16. Some places are implementing enhanced Directive 16, forcing businesses to continue to suspend operations and not being able to disburse because "production has not yet recovered", thus affecting the progress and effectiveness of the program.
Faced with the above difficulties, the Nghe An Provincial Social Policy Bank recommends that the Provincial People's Committee direct relevant departments, branches and People's Committees of districts, cities and towns to have solutions to support and remove difficulties for businesses. The branch is continuing to guide and support customers to complete loan procedures to pay wages for work suspension, pay wages to restore production and business for employees according to the support policy of Resolution 68/NQ-CP and Decision 23/QD-TTg.“We hope that Party committees and local authorities will continue to pay attention to directing, supervising, and supporting employers so that the disbursement of loans to pay for work stoppage wages and wages to restore production is timely, strict, ensuring publicity, transparency, and avoiding negativity.”
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| The provincial branch of the Vietnam Bank for Social Policies provides training and guidance on lending procedures for employers paying salaries according to Resolution 68. Photo: Thu Huyen |
Up to now, the Social Policy Bank branch has completed the loan disbursement procedures for 7 enterprises, the total approved and disbursed loan amount is nearly 1.4 billion VND/564 supported workers. Of which, 3 enterprises borrowed over 980 million VND to pay salary for 406 workers (193 workers are beneficiaries); 4 enterprises that had to temporarily suspend operations due to the request of competent State agencies to prevent and fight the Covid-19 epidemic were able to borrow nearly 261 million VND to pay salary for production and business recovery for 112 workers.
