Message from the Governor & CEO

TANAKA Kazuho Governor & CEO Japan Finance Corporation

Japan Finance Corporation is a policy-based financial institution that carries out financing within a scope determined by applicable laws and budgets, which are based on government policy for SMEs and micro/small businesses, agriculture, forestry, and fishery policy, etc., with the aim to complement financing carried out by private financial institutions.

JFC arranged around 300,000 business loans in FY2019. Of this total, around 51% were for less than 5 million yen and around 94% were for less than 30 million yen. JFC’s primary mission is to meet the capital needs, including small sums, of those starting new businesses, those dealing with natural disasters or a change in business environment, and to serve the capital procurement needs of Japan’s SMEs and micro/small businesses and those engaged in business in the fields of agriculture, forestry, or fisheries.

We have responded to customer needs with a deep sense of our mission as a policy-based financial institution to “connect” policies and those involved in business.

Due to the unprecedented threat in the form of the COVID-19 pandemic, Japan is currently confronting previously unseen economic and social crises. Many businesses have been placed in extremely challenging circumstances.

To support those who have been affected by the COVID-19 related crisis, the government has implemented economic measures on an unparalleled budgetary scale. In accordance with these measures, JFC established new consultation desks and on March 17 began handling COVID-19 Special Loan Program, which are substantially interest-free loans without requiring collateral.

As of September 30, 2020, the number of COVID-19 related loan decisions had reached approximately 660,000, exceeding the results for the prior fiscal year, but also substantially surpassing the results for FY2009, which was impacted severely by the collapse of Lehman Brothers and the subsequent financial crisis.

Private financial institutions also began handling substantially interest-free loans which do not require collateral in May, and Managerial Improvement Loans (MARUKEI Loans), which are handled by Chambers of Commerce and Industry and Societies of Commerce and Industry, were also made subject to interest-free. In August, we began handling COVID-19 Hybrid Subordinated Loan Program in order to bolster the financial foundations of businesses that were impacted by the COVID-19 related crisis. In addition, in October we launched a website to gather case studies of business that have implemented various ideas and innovations for weathering the crisis, providing additional support to businesses that are doing their best.

The future outlook remains unclear, but we aim to deepen our collaboration with private financial institutions, Chambers of Commerce and Industry, Societies of Commerce and Industry, and others. And to work with all supporting organizations to prop up businesses in order to provide effective financial support to businesses.

JFC will support businesses affected by the COVID-19 related crisis, support reconstruction from the Great East Japan Earthquake and other earthquakes, typhoons, and other natural disasters, and perform safety net functions while focusing our efforts on supporting the Strategic Fields of Growth, etc. including entrepreneurialism and new business establishment as well as overseas expansion.

As the number of aging business managers increases, JFC will provide financial support for business succession and continue existing initiatives such as business succession diagnosis and business succession matching services.

To contribute to regional revitalization, we will carefully ascertain the circumstances surrounding regions and businesses and adopt a bird’s-eye perspective of regions to work towards solving their problems. In the meantime, we will perform our function of connecting the various relevant organizations such as private financial institutions while utilizing our nationwide network of 152 branches to deepen collaboration with local communities.

In order to provide high-quality services regarding policy-based financing, JFC will exercise appropriate risk-taking functions and make every effort to provide expert consulting. To reinforce our policy-based financing functions, we will work to streamline business and increase operational efficiency in the aspect of our organizational management.

We sincerely hope for your further understanding and support in the future.

October 6, 2020

TANAKA Kazuho
Governor & CEO
Japan Finance Corporation

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