Ministry of Economy, Trade and Industry
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Measures to assist SMEs' financing in response to the Great East Japan Earthquake and the strong yen

Considering the impact of the Great East Japan Earthquake and the strong yen, the Small and Medium Enterprise Agency (SMEA) has decided that Safety-net Guarantee (No. 5) (*1) should cover all the 82 industries in the second half of FY 2011. Moreover SMEA also decided to continue the "Great East Earthquake Recovery Emergency Guarantee" (*2) and the "Great East Japan Earthquake Recovery Special Loan" (*3) programs in the second half of FY 2011.

  • *1: This is a program whereby Credit Guarantee Corporations guarantee 100% of loans made to small and medium enterprises (SMEs) both engaged in any of the industries designated as experiencing declines in business conditions and certified by the head of the local government as suffering difficulty in maintaining stable management. The guarantee limits under the program are separate from those for the general guarantee.
  • *2: This program is designed to help SMEs affected directly or indirectly by the disaster (including damage to a company's good name caused by unfounded rumors), and 100% of the loans are guaranteed by Credit Guarantee Corporations (aside from general guarantees). This will bring greater benefits than the existing programs through preferable interest rates, loan periods and deferment periods
  • *3: This program is designed to help SMEs affected directly or indirectly by the disaster (including damage to a company's good name caused by unfounded rumors) and will bring greater benefits than the existing programs through preferable interest rates, loan periods and deferment periods

1．Safety-net Guarantee (No. 5) and the Great East Japan Earthquake Recovery Emergency Guarantee Program

In the first half of FY 2011, all 82 industries were entitled to apply for Safety-net Guarantee (No. 5) in principle, in the aftermath of the Great East Japan Earthquake. SMEA has decided to maintain the same eligibility criteria in the second half of FY 2011 to cover all the industries in principle, considering the influence of the Great East Japan Earthquake and the high yen.

The eligibility for Safety-net Guarantee (No. 5) will also be eased (*4) for SMEs experiencing a sharp decline in sales or similar difficulties due to the impact of the strong yen.

Likewise, the Great East Japan Earthquake Recovery Emergency Guarantee Program will continue throughout the second half of FY 2011.

*4: SMEs meeting the following requirement will additionally be eligible: Due to the impact of the high yen, sales for the last month fell 10% or more from the same month last year, in principle, and average monthly sales for the three months including the subsequent two months are expected to decline 10% or more from the same period last year.

2. Great East Japan Earthquake Recovery Special Loan

This program has been implemented for SMEs affected directly or indirectly by the disaster (including the damage of harmful reputation by the unfounded rumors) by the Japan Finance Corporation and Shoko Chukin since May 23, 2011, and considering the severe damage, SMEA has decided to continue this program in the second half in FY 2011.

Appendixes

Release Date

September 27, 2011

Division in Charge

Finance Division, Small and Medium Enterprise Agency

 
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Ministry of Economy, Trade and Industry
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