1. Facilitation of Fund Supply and Enhancement of Equity Capital
(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.
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.
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.