We would like to announce that the Small and Medium Enterprise Agency (SMEA) will lend interest-free money totaling 7.58 billion yen to three credit guarantee corporations operating in Iwate, Miyagi and Fukushima prefectures in order to strengthen their financial foundation. The money will help the three corporations smoothly address the immediate needs of SMEs stricken by the Great East Japan Earthquake to finance working funds and capital spending.

1. It is necessary to strengthen credit guarantee corporations’ financial positions to continue providing credit guarantees to disaster-hit SMEs. Recently the National Federation of Credit Guarantee Corporations invited applications for interest-free lending and received applications from three credit guarantee corporations.
2. SMEA, and the National Federation of Credit Guarantee Corporations jointly examined the submitted applications and decided to lend 7.58 billion yen in total to the three corporations as follows:
   • ・For Credit Guarantee Corporation of Iwate: 2.00 billion yen (for 10 years)
   • ・For Miyagi Guarantee: 2.58 billion yen (for 10 years)
   • ・For Credit Guarantee Corporation of Fukushima: 3.00 billion yen (for 10 years)
3. In the coming days, SMEA will discuss the issues with the three corporations and reach agreement on detailed terms for prompt lending. In combination with these loans, SMEA will request credit guarantee corporations to provide SMEs with an appropriate credit guarantees at the proper time, offer changes of terms for existing debts by SMEs including extensions of repayment schedules and flexible application of guarantee requirements, thereby continuing to adequately help SMEs that were affected by the Great East Japan Earthquake. 

April 13, 2011

Finance Division, Business Environment Department, Small and Medium Enterprise Agency