A rapid increase in application for support measures Requested from financial institutions to accept “bridge financing” April 22, 7:15
The number of applications for the government's financing support measures for SMEs affected by the new coronavirus has rapidly increased, and it often takes time to lend. By that time, the FSA has requested private financial institutions to accept “bridge lending” so that they will not run out of cash.
Amid the government's declaration of an emergency due to the spread of the new coronavirus, the voluntary refraining from going out and the suspension of operations at factories are affecting the financing of small and medium-sized enterprises.
The Japan Government Finance Corporation and the Okinawa Development Finance Corporation are the points of contact for financing support measures implemented by the government, such as loans with virtually no interest and unsecured loans, but the number of applications has increased rapidly, and it often takes time before financing.
Under such circumstances, the FSA has urged private financial institutions to proactively accept "bridge loans" so that they will not get stuck in cash flow before they actually receive a loan.
If a company receives virtually no interest and unsecured loans, it will be able to use the funds to repay private bridge loans, so-called “refinancing”.
The GHLC also accepts refinancing as much as possible if there is a request from the company.