Small and Medium Enterprise AgencyExtension of the Application Period of the Measures to Assist SME and Microenterprise Financing in Response to the Great East Japan Earthquake

1) The Great East Japan Earthquake Recovery Emergency Guarantee program was designed to help SMEs and microenterprises affected directly or indirectly by the Great East Japan Earthquake (including negative effects on a company's business due to rumors, etc.) so that 100% of the loans would be guaranteed by Credit Guarantee Corporations. The application of this program was scheduled to end on March 31, 2013, but on March 12, 2013, the Cabinet decided to issue a cabinet order* for extension of the program's application period until March 31, 2014, concerning the SMEs and microenterprises that have offices in the areas designated as the Specified Disaster Area.

According to the extension, in FY 2013, the Small and Medium Enterprise Agency will implement the measures concerning the guarantee program, prioritizing such SMEs and microenterprises in the Specified Disaster Areas as the subjects of the guarantee.

*The Cabinet Order for Partial Revision of the Cabinet Order for the Enforcement of Provisions Related to the Ministry of Economy, Trade and Industry regarding the Act on Special Fiscal Aid and Subsidy for Recovery from the Great East Japan Earthquake

2) When a mayor or chief of a city, ward, town or village determines whether or not an SME or a microenterprise is qualified for this program, conventionally, the sales for the past three months were compared with the sales of the same period of the previous year or the year prior to the previous year. For FY 2013, however, the qualification can be given by comparison with the sales of the same period of any one of the previous three years.

The Guarantee Related to Disasters program was designed to help SMEs and microenterprises affected directly by the Great East Japan Earthquake so that 100% of the loans would be guaranteed by Credit Guarantee Corporations (in a separate framework from the general guarantee, but in the same as the safety net guarantee). The application of this program was scheduled to end on March 31, 2013, but on March 12, 2013, the Cabinet decided to issue a cabinet order** for an extension of the program's application period until March 31, 2014

**The Cabinet Order for Partial Revision of the Cabinet Order for Designation of Disasters of Extreme Severity concerning the Great East Japan Earthquake and Designation of the Measures to be Adopted for the Disasters

1) The Special Great East Japan Earthquake Recovery Loan was designed to help SMEs and microenterprises affected directly or indirectly by the disaster (including negative effects on a company's business due to rumors, etc.) so that it would bring greater benefits than the existing loans through preferable interest rates, loan periods and deferment periods, implemented by the Japan Finance Corporation and other organizations. This loan program has been implemented since May 2011, and will continue to be implemented throughout FY 2013, while prioritizing SMEs and microenterprises in the affected areas as the subjects of the program.

2) For preferable interest rate application to an SME or a microenterprise that has dealings of more than a certain level with entrepreneurs directly affected by the disaster, the Bureaus of Economy, Trade and Industry conventionally compared the sales for the past three years with the sales of the same period of the previous year or the year prior to the previous year before issuing a damage certificate. In FY 2013, however, the certificate may be provided based on a comparison with the same period of any one of the previous three years.

3) For preferable interest rate application to an SME or microenterprise whose business was negatively affected due to rumors, etc., the sales of the past three months were conventionally compared with the sales of the same period of the previous year or the year prior to the previous year. In FY 2013, however, the preferable interest rate may be applied based on a comparison with the sales of the same period of any one of the previous three years, like the case of 3. (2) mentioned above.

• Appendix 1: Outline of the Great East Japan Earthquake Recovery Emergency Guarantee (PDF:144KB) (in Japanese)
• Appendix 2: Outline of the Special Great East Japan Earthquake Recovery Loan (PDF:159KB) (in Japanese)

March 12, 2013

Information on the Great East Japan Earthquake Recovery Emergency Guarantee and the Special Great East Japan Earthquake Recovery Loan

Finance Division, Small and Medium Enterprise Agency

Information on the Guarantee Related to Disasters

Office for Business Stability, Small and Medium Enterprise Agency