When small and medium-sized enterprises receive loans from financial institutions, the individual owner of the company acts as a joint guarantor. The government has created a system that does not require personal guarantees for start-up companies that have been in business for less than five years. will support the expansion of
If the owner of a personal guarantee becomes a joint guarantor, it will be easier for financial institutions to lend money. It has been pointed out that there are aspects that hinder
For this reason, the Ministry of Economy, Trade and Industry, the Financial Services Agency, and the Ministry of Finance have put together measures to encourage financial institutions to lend without relying on personal guarantees.
First, in March next year, we will create a system that does not require personal guarantees up to a certain amount for start-up companies that have been in business for less than five years and receive loans from credit guarantee associations.
In addition, from April next year, financial institutions will be obliged to explain the reasons to business owners when they request personal guarantees.
In April of next year, we will create a system that will allow companies to cancel personal guarantees if they pay additional guarantee fees.
The government wants to support the establishment of start-up companies and the expansion of small and medium-sized enterprises through a series of reviews.