(Provisional Translation)
March 8, 2022
Financial Services Agency

 

Further Business Rehabilitation Support through the "Guidelines for Business Revitalization, etc. of Small- and Medium-sized Enterprises"

Amid the prolonged impact of the COVID-19 infection over two years, the Japanese Bankers Association and other related parties compiled and published the "Guidelines for Business Revitalization, etc. of Small- and Medium-sized Enterprises" (the "Guidelines") recently for the purpose of developing a favorable environment for management improvement for SMEs that are suffering from increasing debts. Furthermore, the Ministry of Economy, Trade and Industry, the Financial Services Agency, and the Ministry of Finance jointly formulated and published the "Revitalization Package for Small- and Medium-Sized Enterprises" with the aim of further enhancing cash flow support towards the fiscal year end, when demand for operating capital increases in particular, and of implementing comprehensive support measures to encourage SMEs suffering from increasing debts to make efforts for improving earning power, business revitalization, or taking on new challenges.

Public and private financial institutions are expected to offer business support further by utilizing the Guidelines, in addition to endeavoring to respond to companies' diverse demand for funds toward the fiscal year end. On March 8, we made a request to them as shown in the notice titled "Facilitation of Finance for Companies, etc."

At the same time, your cooperation is also considered to be important in disseminating the Guidelines and encouraging SMEs to make efforts for improving earning power, business revitalization, or taking on new challenges. Please properly inform the members of your association regarding the following,

1. Thoroughly disseminate the Guidelines to operating companies of funds to which the REVIC and the Organization for Small & Medium Enterprises and Regional Innovation make contributions as well as to Small and Medium-Sized Enterprise Revitalization Support Councils[1] nationwide.

2. When companies, public and private financial institutions proceed with the procedures for rehabilitation-type voluntary liquidation based on the Guidelines, offer cooperation to promote the utilization of the Guidelines, in collaboration with financial institutions, etc., in such manner as assisting with smooth progress of the procedures using your know-hows for supporting corporate rehabilitation, while funds to which you make contributions support companies' efforts for financial improvement through capital contributions, etc.

3. The REVIC is expected to promote the transfer of know-how to cooperative local financial institutions through offering support to companies affected by the COVID-19 infection, thereby endeavoring to enhance the independent ability to support corporate rehabilitation in respective regions and facilitate efforts for regional revitalization.

4. The Organization for Small & Medium Enterprises and Regional Innovation is expected to make efforts to compose funds that intensively support industries seriously affected by the COVID-19 infection (businesses providing accommodation services and eating and drinking services, etc.) and to eliminate areas with no fund, while taking advantage of the fact that the maximum capital contribution ratio in the SME Management Strengthening Fund and the SME Rehabilitation Fund was raised to 80% in the second supplementary budget for FY2020 and the supplementary budget for FY2021.

5. The Organization for Small & Medium Enterprises and Regional Innovation is expected to encourage Small and Medium-Sized Enterprise Revitalization Support Councils nationwide to introduce third-party support experts in accordance with the details of consultations and requests of individual companies or otherwise endeavor to disseminate the Guidelines in respective regions.


[1] On April 1, 2022, the Small and Medium-Sized Enterprise Revitalization Support Councils will be integrated with relevant organizations and the Small and Medium-Sized Enterprise Revitalization Council will be established for the purpose of integrally supporting SMEs' efforts for improving earning power, business revitalization, or taking on new challenges.

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