SMRJ will establish a program to loan funds for facility and equipment through small and medium enterprise support institutions (SME support institutions) (e.g., semi-public corporations run by prefectural governments) to recovery projects jointly conducted by groups of SMEs affected by the earthquake.

This loan program will be implemented along with the subsidies for facility and equipment restoration (¥16.5 billion) secured in the FY 2011 primary supplementary budget.

(1)Eligible projects

(i) Facility/equipment restoration projects conducted by groups of SMEs in accordance with authorized recovery project plans*
* Recovery project plans authorized by the prefectural government, regarding SME groups' facility and equipment restoration subsidies secured in the FY 2011 primary supplementary budget. In a project with an authorized recovery plan, necessary expenses for facility restoration will be 50 percent subsidized by the national government and 25 percent subsidized by the prefectural government.

(ii) Facility/equipment restoration projects conducted by SMEs operating in temporary stores or factories* offered by SMRJ
* SMRJ will set up temporary stores and factories and rent them to SMEs through municipal governments free of charge in principle.

(iii) Facility/equipment restoration projects conducted by Societies of Commerce and Industry and Chambers of Commerce and Industry
* Necessary expenses for the restoration of facilities of Societies of Commerce and Industry and Chambers of Commerce and Industry will be 50 percent subsidized by the national government.

Moreover, the loan conditions of the existing enhancement loan system for affected SME cooperatives will also be expanded.

(2) Loan conditions

• Interest: Free
• Loan period: Up to 20 years (up to a five-year grace period)
• Borrower's own liability: The smaller of 1% of the expenses for the project receiving the loan or ¥100,000.
  (The prefectural government pays the smaller of 1% of the expenses of the project receiving the loan or ¥1 million.)
• Surety: Surety and a joint guarantee needed

SMRJ will establish a program to loan funds to install energy equipment (energy conservation equipment, new energy systems, private power generation facilities, etc.) to SME cooperatives and their members.

(1) Eligible projects

(i) Projects conducted by members of SME cooperatives to install energy equipment (energy conservation equipment, new energy systems, private power generation facilities, etc.) as part of projects financed by enhancement loans (for developing industrial parks, shopping districts, etc.) and projects conducted by SME cooperatives to install such equipment for lease to their members

(ii) Projects conducted by SME cooperatives to install shared energy equipment (energy conservation equipment, new energy systems, private power generation facilities, etc.)

(2) Loan conditions

• Interest rate: 1.05% (for FY 2011)
• Loan period: Up to 20 years (up to a five-year grace period)
• Borrower's own liability: The smaller of 1% of the expenses for the project receiving the loan or ¥100,000
  (The prefectural government pays the smaller of 1% of the expenses for the project receiving the loan or ¥1 million.)
• Surety: Surety and a joint guarantee needed

(3) Others

• The project is due to end at the end of March 2014.

May 16, 2011

Business Support Division, Business Support Department, Small and Medium Enterprise Agency

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