New virus: Fully guarantee of small and medium-sized enterprises whose sales have fallen sharply February 13 13:20
Since the spread of the new coronavirus has affected the management of small and medium-sized businesses, the government has set up a local credit guarantee association called `` Safety Net Guarantee '' for small and medium-sized businesses for companies whose sales have decreased sharply. We have decided to implement a system that guarantees 100% of borrowings in all prefectures.
This system is called “Safety Net Guarantee No. 4” and is applied by the government at the request of the local government in the event of a disaster or other sudden event that hinders the stable management of SMEs. Credit Guarantee Association guarantees 100% of SME borrowings.
The target is SMEs whose sales and the number of users are expected to decrease by more than 20% compared to the same month in the previous year, and to decline thereafter. The benefit is that it is easier to get a loan from a financial institution because the maximum amount is guaranteed.
Credit Guarantee Associations in each region will start accepting applications from March 2 following advance consultation on March 28.
This is the first time that all prefectures have been applied under this system, and this is the first time that infectious diseases are the cause.
Separately, the “Safety Net Guarantee No. 5” system, which guarantees 80% of borrowings for SMEs whose sales have decreased by more than 5% from the same period of the previous year, will be expanded.
New industries such as the travel and hotel industries will be designated next week, and the government will expand the scope of SMEs to support and strengthen its financing measures.