I. Japan's SME Policies in Relation to the Country's Economic Development II. Outline of the New Small and Medium Enterprise Basic Law III. Introduction to SME Policies IV. Outline of Major SME Policies V. Implementing System for Japan's SME Policies VI. Organization Chart of Small and Medium Enterprise Agency VII. Share of SMEs in the Japanese Economy VIII. Small and Medium Enterprise Basic Law Sharing of Information about Best Practices White Paper

(1.1) Facilitation of Fund Supply

In order to facilitate fund supply for small and medium enterprises (SMEs), the State shall strengthen the functions of governmental financial institutions, develop credit enhancement projects, direct private sector financial institutions to conduct proper lending for SMEs, and take any other necessary measures.

• Providing loans from three governmental financial institutions

Japan Finance Corporation for Small Business, National Life Finance Corporation and Shoko Chukin Bank offer low-interest loans to SMEs according to their purposes of fund use.

• Supplement credit capability of SMEs with the credit insurance system and credit guarantee system

Both systems aim to contribute to smooth fund procurement for SMEs through guarantee by the Credit Guarantee Corporation for their loans of business funds from financial institutions.

(1.2) Enhancement of Equity Capital

Small and Medium Business Investment and Consultation Companies (private companies mostly owned by local governments or financial institutions) underwrite new shares, CBs and warrant bonds issued by a corporation with capital of not more than 300 million yen, in general.

(1.3) Taxation Systems Related to SMEs

These systems include reduction in corporate income tax and other taxes, various deductions from income tax and other taxes, special measures for promoting investment in equipment, and facilitation of business succession.

 

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