In order to contribute to mutual supplementation of management resources needed to reinforce the management infrastructure of SMEs, through support projects for joint promotion of exchange and collaboration of SMEs, JASMEC and prefectural governments provide funds to extend long-term and low-interest loans for projects to advance modernization and rationalization of SMEs through promotion of SME structure upgrading, including joint performance of SMEs' projects and collectivization of factories and stores for the purpose of managerial improvement of SMEs, including upgrade of management methods and technical advancement. In addition, to avoid excessive investment and realize the smooth operation of business in reference to other successful cases, in implementation of loans, appropriate examination and advice on business plans shall be given in advance from professionals in the field. In addition, such examination and advice shall be given on demand, even after the implementation of loans. There are two methods in the flow of upgrading funds: | (1) Method A: | In an upgrading project implemented by an SME in a prefecture, JASMEC lends part of the necessary funds to the prefecture, which extends a loan to said SME by adding its own funds to said funds. | | (2) Method B: | In an upgrading project implemented by an SME that is located in two or more prefectures, JASMEC borrows part of the necessary funds from the prefectures concerned and extends a loan to said SME by adding its own funds to said funds. |
<< Loan conditions >>
- Loan interest rate:
1.5% (applicable to new loans in FY2001)
No interest (projects approved under special laws, disaster restoration projects, etc.)
- Loan limit:
Not more than 80% of applicable project cost (not more than 90% for small-scale enterprises)
- Share of fund supply:
JASMEC (the State): Prefectural governments --> 54:26 (60:20 until FY2001)
- Repayment period:
A period that is not more than 20 years and approved by the prefectural governor (period of deferment: not more than 3 years)
- Applicable loan recipients:
SME associations such as business cooperative associations and shopping district promotion associations, groups and third sectors approved under the Law on Supporting Business Innovation of Small and Medium Enterprises
<< Amount of loans (FY2001 budget) >>
| - Loan budget amount: | | | | Total project amount: | | ¥ 267.6 billion | | JASMEC's portion: | | ¥ 161.7 billion | | - Investment budget amount: | | ¥ 10.0 billion | | - Outstanding loans (by JASMEC, as of the end of March 2001): | | ¥ 1,071.8 billion |
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