Cash Flow Support for Companies in Consideration of the Extension of the Declaration of a
State of Emergency (Request)

　We appreciate financial institutions' steady efforts for providing cash flow support for companies while preventing the spread of infection in response to our repeated requests under the declaration of a state of emergency issued by the national government.
Due to the further expansion of the impact of the COVID-19 infection, the national government decided to extend the declaration. Financial institutions are required to continue their utmost efforts to ensure cash flow support towards the fiscal year end in consideration of such impact of the infection and the business conditions and funding needs of SMEs and leading medium-sized companies.
While endeavoring to secure cash flow support and prevent the spread of the infection, we would like to reiterate the following requests so that efforts for cash flow support will be further continued based on what we have requested in the Notice, "Request for Thorough Support for Companies Based on the Comprehensive Economic Measures to Secure People's Lives and Livelihoods toward Relief and Hope," published on December 8, 2020, the Notice, "Cash Flow Support for Companies in Response to Measures to Prevent the Spread of Infection toward Year-end and New-year Holidays," published on December 17 2020, and the Notice, "Cash Flow Support for Companies in Response to the Expansion of the Impact of the COVID-19 Infection," published on January 19, 2021. Please properly inform the members of your association.
 
 
(1)   Positively check the funding needs of SMEs and leading medium-sized companies, meticulously respond to their consultations and offer support in consideration of the circumstances where demand for operating capital increases toward the fiscal year end amid the extended declaration of a state of emergency.

(2)   In addition to the positive provision of new loans for funds that are necessary until various benefits are actually paid and for funds necessary toward the fiscal year end, as well as active utilization of subordinated loans recognizable as capital, make flexible responses to the extent possible depending on the circumstances of respective SMEs and leading medium-sized companies with regard to the modification of conditions for existing loans for which the repayment period or the period of deferment is about to end, such as by extending those periods. Also continue efforts for omission or simplification of documents to be collected upon such modification.

(3)   Considering the impact of the extension of the declaration of a state of emergency and increased funding needs toward the fiscal year end to be exerted on payment of rent by tenant restaurant business operators and individuals, and on fund procurement by owners of hotels, leisure facilities, or buildings for rent, in particular, make flexible responses to the extent possible to these SMEs and facility owners with regard to the provision of new loans or bridge loans and modification of conditions for existing loans, such as moratoriums on payments, as requested in the Attachment, "Cash Flow Support for Companies Regarding Rent (Request)," published on May 8, 2020.

(4)   Positively utilize the system for effectively interest-free and unsecured loans by private financial institutions, for which the upper limit was raised, by fully taking into account the circumstances and needs of respective SMEs, and meticulously and empathically respond to their consultations such as by proposing the extension of the period of deferment or repayment period as needed.

(5)   In addition to cash flow support mentioned above, fully utilize the Subsidy Program for Business Reconstruction, which is to be implemented under the third supplementary budget for FY2020, and the Reconstruction Support Fund by the Regional Economy Vitalization Corporation of Japan (REVIC) as needed, and also positively provide support for companies' management improvement and business reconstruction and transformation in collaboration with other financial institutions and support organizations.