2nd Emergency Measures 23:52 on March 10 for details of funding support measures

As a second emergency response measure, the government will adjust the loan and guarantee framework from the current ¥ 500 billion to support the financing of SMEs and others whose business performance has deteriorated due to the spread of the new coronavirus infection To 1.6 trillion yen.

Interest-free loan system

In the first emergency response plan, a loan and guarantee framework for small and medium-sized enterprises of about 500 billion yen was provided as funding support through the Japan Finance Corporation.

In the second phase, in addition to this, we will secure a new loan facility of about 500 billion yen in order to establish a special loan system that can receive loans substantially free of interest and unsecured.

Specifically, the interest rate will be reduced by 0.9% for SMEs and freelancers, including freelancers, 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.

Then,
▼ For companies in more severe business conditions, such as a decrease in sales of 15% to 20%, the government will make up for the amount of interest, so that it can be borrowed at substantially no interest regardless of creditworthiness or collateral.

The maximum loan amount covered by interest is
▽ 100 million yen for SMEs,
▽ Small businesses are 30 million yen.

Companies that have already received urgent loans from the Japan Finance Corporation for the first measure are also eligible for the new system, going back to the January 29 application.

First “crisis-related assurance” implemented

The credit guarantee associations in each region will also expand the system that guarantees SMEs' cash flow.

In the first measure,
▼ "Safety Net Guarantee No. 4", which guarantees 100% of borrowings up to 280 million yen in a separate frame for companies whose sales etc. decreased by 20% or more,
▼ For companies whose sales have decreased by more than 5%, we have expanded the system called “Safety Net Guarantee No. 5” which guarantees 80% of borrowings.

The first “crisis-related assurance” mechanism, which is different from the first one, is to provide 280 million yen to small and medium-sized enterprises, whose sales have decreased by more than 15%, regardless of the region or industry. 100% guarantee of borrowing to the upper limit.

Apply “crisis response financing”

In addition, as a support measure for large and medium-sized companies, we will apply a special loan system called "crisis response financing" to "crisis recognition" regarding 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 a total of ¥ 204 billion in credit lines, but there is no limit on the amount of loans to individual companies.

This system was created in the wake of the Lehman Shock in 2008, and will be implemented when private financial institutions cannot provide sufficient funds due to major changes in the economic environment or large-scale disasters.

It has the merit that you can get a loan in cases where it is difficult to borrow from a general financial institution or where a large amount of money is required.

Support for securing supply chains

Furthermore, the Bank for International Cooperation established a 250 billion yen loan facility for up to 500 billion yen in demand for funds in order to support Japanese companies' overseas business and the supply network of parts and so on, the so-called “supply chain”. You.

The total amount is about three times the first

Combining all of these financing and guarantees, the total is 1.6 trillion yen, which is about three times the 500 billion yen of the first phase.

Keidanren Chairman Nakanishi ...

Regarding the government's second emergency response plan, Keidanren Chairman Nakanishi told reporters, "The government has indicated that it will do everything it can, and the business community will be more effective. I think it is important to provide feedback on the situation at the site in order to achieve this. "

Regarding the inclusion of support measures such as funding for small and medium-sized enterprises, Chairman Nakanishi said, "The business community must also do it. Problems are emerging in various industries such as distribution and construction, What I have is that I may stop working at the same time, so I will definitely take action. "

227.2 billion yen spent from contingency

The government decided to spend 227.2 billion yen from the general budget contingency in the 2019 budget to implement the second emergency response measure.

As a result, the remaining budgetary reserve for this fiscal year will be ¥ 44.7 billion.

At the same time, the government will pay 42 billion yen of the entire labor insurance special reserve for the current fiscal year as part of a subsidy for parents who have to take work off due to temporary school closure. I decided.

Minister Nishimura, Minister for Economic Revitalization, said at a press conference that the second emergency response was, "First of all, controlling the spread of infection is a plus to the economy, and that's the place to go. At the same time, we would like to take measures of about 2 trillion yen to firmly support SMEs and support the economy. "