Impact of the new corona Support measures to support SME funding on March 30 17:06
A variety of support measures are being prepared to help small and medium-sized businesses face a rapid decrease in sales following the spread of the new coronavirus.
Interest-free and unsecured financing
Government finance corporations such as the Japan Finance Corporation have a special loan system that allows them to receive loans substantially free of interest and unsecured.
Specifically, the interest rate will be reduced by 0.9% for SMEs and free-lance sole proprietors whose sales have decreased by more than 5% so that they will be able to obtain loans at the 0% level for the next three years.
In addition, for companies in more difficult business conditions, such as a 15% to 20% decrease in sales, the state can make up for the amount of interest and borrow substantially without interest, regardless of creditworthiness or collateral. You.
The maximum loan amount covered by interest is 100 million yen for SMEs and 30 million yen for small businesses.
Safety net guarantee
Credit Guarantee Associations in each region have a system that guarantees 80% to 100% of borrowings as sales and other factors decrease, making it easier for SMEs to obtain loans from financial institutions.
The system called "Safety Net Guarantee No. 4" guarantees 100% of the borrowed money for companies whose sales have decreased by more than 20%, up to 280 million yen in a separate frame.
The system called “Safety Net Guarantee No. 5” guarantees 80% of the borrowed money for companies whose sales have decreased by more than 5%.
Crisis-related guarantees
The “crisis-related guarantee” is a system separate from the safety net guarantee. For small and medium-sized enterprises whose sales have decreased by 15% or more, borrowing is limited to 280 million yen, regardless of the region or industry. % Guarantee.
Crisis response financing
In addition, as a support measure for large and medium-sized enterprises, we have applied a special loan system called “crisis response financing” to “crisis recognition” for the economic impact of the spread of the new coronavirus on the economy.
The Development Bank of Japan, a government-affiliated financial institution, and the Bank of Commerce and Industry will finance the immediate working capital, etc. with the contribution of the government.
There is no upper limit on the amount of loans to individual companies, and there is an advantage that loans can be obtained in cases where it is difficult to borrow from general financial institutions or where large amounts of funds are required.
Further measures
In addition, the government is considering unusual measures to provide cash directly to small businesses and small businesses.
In addition, we are urgently considering a specific mechanism in order to make it possible for small and medium-sized enterprises to receive substantially interest-free loans from private financial institutions.