In order to prevent the increase in the number of bankruptcies and the occurrence of chain-reaction bankruptcies among small and medium enterprises (SMEs) due to the worsening business environment in the wake of the Great East Japan Earthquake, safety-net loans (funds to respond to customer bankruptcies) provided by Japan Finance Corporation, etc., will be applied a special interest rate up to 0.75% below the base rate from May 23 to companies which meet certain specified requirements.

Safety-net loans (funds to respond to customer bankruptcies) are a financing program that assists SMEs facing business difficulties for reasons such as a customer bankruptcy by ensuring them access to financing.

To prevent the increase in the number of bankruptcies and the occurrence of chain-reaction bankruptcies among SMEs in the aftermath of the Great East Japan Earthquake, the Small and Medium Enterprise Agency has implemented a measure to reduce the interest rate applicable to SMEs supported by this program, according to the degree of hardship being experienced (see the Appendix for further information ).

May 23, 2011

Office for Business Stability, Business Environment Department, Small and Medium Enterprise Agency

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