Measure for Supporting SMEs Affected by Novel Coronavirus to be Taken (Designation of Areas Subject to No.4 Safety Nets for Financing Guarantee)
February 28, 2020
The Ministry of Economy, Trade and Industry (METI) will exercise “No.4 Safety Nets for Financing Guarantee”* as a measure to support financing of SMEs negatively affected by the recent occurrence of the novel coronavirus. This measure permits SMEs affected by the novel coronavirus to make use of a financing guarantee separate from a general financing guarantee.
METI received requests from all 47 prefectures across Japan for designation as areas subject to No.4 Safety Nets for Financing Guarantee due to the fact that the novel coronavirus has negatively affected or may negatively affect business activities of numerous SMEs and small enterprises.
*Note: “No.4 Safety Nets for Financing Guarantee” aims to support financing of SMEs and small enterprises whose sales and other profits are declining. In this system, the Japan Federation of Credit Guarantee Corporations (JFG) will guarantee the full loan amount for such SMEs under a framework separate from a general financing guarantee (see the Appendix).
In light of the requests, METI decided to exercise No.4 Safety Nets for Financing Guarantee targeting the following areas as a measure for supporting financing of SMEs and small enterprises whose sales and other profits are declining because of the impact of the novel coronavirus.
Areas subject to the measure: All 47 prefectures
On March 2, 2020, METI will publicize a public notice on this designation of the target areas in the official gazette. Prior to this, on February 28, 2020, the JFG will open a preparatory consultation counter for businesses to explain No.4 Safety Nets for Financing Guarantee.
Links to related information
Division in Charge
Finance Division, Business Environment Department, Small and Medium Enterprise Agency