Start of interest-free loan system from a private financial institution Today: New Corona May 1 5:30
Starting from the 1st, a system where small and medium-sized enterprises whose sales have decreased due to the spread of the new coronavirus can receive loans from private financial institutions with virtually no interest and without collateral.
This system is one of the funding support that has been decided to be implemented by the government's emergency economic measures, and it will be accepted from the window of private banks and credit unions in each region from the 1st.
Loans are targeted at small and medium-sized enterprises / small businesses whose sales for the month decreased by 15% or more compared to a year ago, and individual business owners whose sales decreased by 5% or more.
The government will be able to borrow interest-free funds for up to 30 million yen for three years by supplementing (interesting) interest rates on loans called "institutional loans" of prefectures.
The repayment of the principal will also be deferred for up to 5 years.
In order to receive a loan, it is necessary to show the books, etc., at the window of the municipality, and have it certified as "sales have decreased".
The government is calling for private financial institutions to carry out the procedures in lieu of companies and sole proprietors to avoid delays in the procedure due to the congestion of municipal offices.
Loans with virtually no interest and unsecured loans have already begun at government-affiliated financial institutions, but it is taking a long time to process due to a flood of applications.
The issue is how quickly private sector financial institutions can reach out to small and medium-sized enterprises who need funding as soon as they start lending.
Who is eligible for a loan?
This system allows you to receive virtually no interest and unsecured loans from private financial institutions.
Available to small and medium-sized enterprises and small businesses whose monthly sales have decreased by more than 15% compared to a year ago due to the spread of new coronavirus infection.
It is available to sole proprietors, including freelancers, when their sales decline by 5% or more.
Unsecured loan of up to 30 million yen and repayment of principal will be held for up to 5 years.
If you have already received a loan with interest from a private financial institution with the guarantee of the Credit Guarantee Society, you can refinance this interest-free loan.
This system uses a loan called "institutional loan" from prefectures.
This is a mechanism in which the government compensates for the interest rate of this loan, effectively eliminating the interest payment of companies and sole proprietors.
You have to pay virtually no interest for the first 3 years and interest from the 4th year.
Depending on the prefecture, companies and sole proprietors are divided into a system that does not require any interest payment when they repay, and a system that allows them to pay the interest and then compensate it.
How to get a loan?
1. The first necessary procedure is to have the local municipality certify that “sales have decreased”.
2. Once certified, you will receive a guarantee from a credit guarantee association in your area.
3. Then, the flow is to get a loan from a bank or credit union.
In order to be certified as "sales have decreased" in the municipality, you will need ▽ materials that give an
overview of the company,
▽ copies of tax returns and financial statements, and
▽ materials that show a decrease in sales.
If you apply in May, you will need the sales results for April and the forecast for May and June.
Next, the Credit Guarantee Association and banks may need a
copy of the commercial register, a
certificate of the seal stamp, and documents that show
the repayment status of the loan.
Required documents and materials may differ depending on the local government, credit guarantee association, and bank.
The government is now calling for a series of procedures to be carried out by private financial institutions on behalf of companies and sole proprietors in order to accelerate the procedure.
For this reason, if you would like to obtain a loan, we recommend that you first consult with a financial institution window.
Many financial institutions open consultation desks at relatively large stores during large holidays to provide consultation.