As the repayments of the so-called "zero-zero loans" implemented for small and medium-sized enterprises during the coronavirus pandemic are reaching their final peak, the government is extending financing support measures such as refinancing guarantees until the end of June, and implementing measures such as business improvement. We have decided to strengthen our support.
So-called "zero-zero loans," which are essentially interest-free and unsecured, began in March 2020 to support the financing of small and medium-sized enterprises whose sales have significantly decreased due to the coronavirus pandemic.
Repayments of zero-zero loans have been in full swing since July last year and will reach their final peak next month, but it is expected that some small and medium-sized enterprises will be saddled with excessive debt and will be at risk of continuing to operate.
For this reason, the government has decided to extend the funding support measures, which were due to expire at the end of this month, until the end of June.
Specifically, in addition to guarantees for refinancing from ``Zero Zero Loans'' provided by private financial institutions, ``Corona Special Loans'' with low interest rates by the Japan Finance Corporation, and ``Corona Special Loans'' that can be considered capital due to their low repayment priority. The application deadline for "subordinated loans" will be extended.
On the other hand, starting in July, the government will return funding support to pre-coronavirus levels and strengthen support for small and medium-sized enterprises to improve their management and revitalize their businesses in cooperation with financial institutions.
Minister of Economy, Trade and Industry Saito said at a press conference after the Cabinet meeting on the 8th, ``I would like to communicate the details of the measures to small and medium-sized enterprises in an easy-to-understand manner and firmly support their management improvement and business revitalization.''