Feature of Operations

As of the end of FY2023, Business Loans were provided to 1.17 million businesses. The average loan balance per business is 8.77 million yen, most of which were small loans.

Approximately 90% of borrowers are micro/small businesses with nine or fewer employees, and many are sole proprietors. Over 90% of all loans are uncollateralized.

We made every effort to support micro/small businesses affected by COVID-19, and as a result, the number of the businesses received business loans increased by approximately 290,000 compared to March 31, 2020.

▼Number of business borrowers and average loan balance per business (as of March 31, 2024)

	Micro Business and Individual Unit	Total for shinkin banks(254 banks)	Total for domestic banks(132 banks)
Number of business borrowers(million)	1.17	1.23	2.19
Average loan balance per business(million yen)	8.77	43.94	114.56

Notes:

• Figures for Micro Unit are the total of General Loans and Environmental Health Business Loans.
• Domestic banks include major commercial banks, regional banks, regional banks II, and trust banks.
• Figures for shinkin banks (based on “total” in Deposits and Loans Market statistics by the Bank ofJapan) and for domestic banks (based on “SMEs” in Deposits and Loans Market statistics by the Bank of Japan) do not include loans to individuals (loans for housing, consumption, tax payments,etc.), loans to regional public organizations, overseas yen-loans, or loans made to businesses in foreign countries in name of their domestic branches.
• Number of businesses for shinkin banks and domestic banks are based on the number of loans in Deposits and Loans Market statistics by the Bank of Japan.

Source: Bank of Japan website

Measures during disasters

In the event of natural disasters such as earthquakes, typhoons, and torrential rains, or other unforeseen events such as major corporate bankruptcies, a special consultation desk is immediately established to promptly respond to inquiries from affected micro/small businesses regarding loans, repayment conditions, etc.

Main consultation desks currently in operation (as of June 30, 2024)

	Number of consultation desks	Consultation desks currently in operation	Date of establishment
Disaster-related	8	Special consultation desk for the Great East Japan Earthquake	Mar. 2011
		Special consultation desk for damage suffered as a result of heavy rain from July 3, 2020	Jul. 2020
		Special consultation desk for damage suffered as a result of Typhoon No. 14 of 2022	Sep. 2022
		Special consultation desk for damage suffered as a result of Typhoon No. 15 of 2022	Sep. 2022
		Special consultation desk for damage suffered as a result of the earthquake in Noto Peninsula of Ishikawa Prefecture in 2023	May 2023
		Special consultation desk for damage suffered as a result of heavy rain from July 7, 2023	Jul. 2023
		Special consultation desk for damage suffered as a result of Typhoon No. 13 of 2023	Sep. 2023
		Special consultation desk for damage suffered as a result of the 2024 Noto Peninsula Earthquake	Jan. 2024
Others	4	Special consultation desk relating to COVID-19	Feb. 2020
		Special consultation desk relating to situation in Ukraine and rising oil prices, etc.	Nov. 2021
		Special consultation desk for management, export, and other measures for disposal of ALPS treated water	Aug. 2023
		Special consultation desk for SMEs relating to the supply chain of Daihatsu Motor	Jan. 2024

Response to the Spread of COVID-19

The Micro Unit created special consultation desks at its 152 branches nationwide and is providing consultations on financing and repayment for micro/small businesses that have been impacted by the COVID-19 pandemic. We are providing COVID-19 Special Loan Program to clients that meet certain conditions such as a decline in sales.

From January 29, 2020, the day when the consultation desks were established, to March 31, 2024, we provided a total of 1,194,204 COVID-19 related loans worth a total of 13,473.9 billion yen.

To meet our customers’ needs, we provide various information services, financial diagnostic services, SWOT analysis services, and other services that are useful for our customers’ business management, as well as support in collaboration with outside experts and matching services utilizing our nationwide network of 152 branches.

Support for business start-ups

Not a few companies that have yet to start and those that are within 1 year of start-up face difficulties in raising funds for such reasons as a shortage of business experiences. The Micro Unit actively provides loans to these companies to support their business activities. The Micro Unit provided loans to a total of 26,447 business start-ups (consisting of those that have yet to start and those that are within 1 year of start-up) in FY2023. It is estimated that about 74,000 jobs were created as a result.

Supporting women, youth, and senior entrepreneurs

As the economic society diversify and the range of business start-ups has been expanding, Micro Unit supports a wide range of business start-ups, including women, youth, and senior entrepreneurs.

Loans for women, youth, and senior entrepreneurs (number of businesses)

Business Start-up Support Desks have been established in the 152 branch offices nationwide

Business Start-up Support Desks provide services in which specialists offer advice on business start-up plans to people planning to start up a business and offer a wide variety of information on starting a business.

The Micro Unit has established business start-up support centers, business support plazas, and start-up support plazas throughout Japan. Through these facilities, we support a wide range of business start-ups.

Establishment of business start-up support centers throughout Japan
Centers are located in 14 regions of Japan from Hokkaido to Kyushu. Centers organize diverse seminars targeted at customers in varying stages of their business cycle, both before and after starting business, and also provide timely support to customers through collaboration with regional organizations that support start-ups.

Establishment of business support plazas throughout Japan
Three locations: Tokyo (Shinjuku), Nagoya, and Osaka. Appointments for in-depth consultation are available to persons who plan to start a new business. For those who cannot consult during regular business hours, weekend appointments are also available (excluding national holidays).

Note: Sunday consultations are available on first and third Sundays of each month at Tokyo (Shinjuku) Business Support Plaza.

Establishment of start-up support plazas throughout Japan
Plazas are located in four locations: Tokyo (Shinjuku), Nagoya, Osaka, and Fukuoka. In collaboration with venture capitals, private financial institutions, and other support organizations, it provides detailed financing advice for seed and early-stage start-ups.

We contribute to the growth and development of start-ups striving to achieve rapid growth that serve as a driving force for problem-solving and economic growth and provide original value with innovative ideas and uniqueness. In addition to providing financial support through capital subordinated loans and other startup-related financing, Micro Unit offers core business support, such as business matching with large companies and seminars to share management expertise.

Business revitalization support staff have been deployed at 152 branches nationwide to respond flexibly to requests for relaxing repayment terms, e.g., a reduction in the installment amount, temporary deferment of principal repayment, etc. In addition, by way of loan programs for business revitalization support and by providing advice for the resolution of business issues and support for the enactment of business improvement plans, the Micro Unit supports businesses undergoing corporate reorganization in cooperation with private financial institutions, outside experts, and public support organizations.

To support micro/small businesses in securing successors, the Micro Unit conducts a nationwide business succession matching support program to match micro/small businesses that do not have a successor with people who wish to start their own businesses. We also disseminate information on business succession diagnosis and best practices and hold events in collaboration with business succession support centers, Chambers of Commerce and Industry, and Societies of Commerce and Industry to raise the awareness of business owners and facilitate third-party succession. In addition, we support business succession from both the information and capital aspects in cooperation with regional financial institutions to respond to diverse capital needs relating to business succession.

The Micro Unit supports bearers of social businesses that support regional and social issues, such as supporting the care and welfare of the elderly and disabled, child rearing, environmental conservation, and regional revitalization.

The FY2023 loans to social businesses came to: 16,514 loans, 122.2 billion yen.

Overseas Expansion Support Desks are established at 152 branches nationwide to actively support businesses that are working to expand overseas. JFC-Micro cooperates with Japan External Trade Organization (JETRO), Organization for Small & Medium Enterprises and Regional Innovation, JAPAN (SME Support, JAPAN), Japan Federation of Bar Associations, and other organizations that support overseas expansion. We establish consultations systems that can provide detailed support information according to the needs of customers by providing advice for first-time overseas expansion, information on overseas exhibitions and business matching events, and confirmation of local laws and regulations, required permits and licenses, and the details of contracts.

Collaboration with regional financial institutions

We actively cooperate with regional financial institutions, utilizing their respective strengths and expertise, to provide support to our customers as well as to revitalize the regional economy.

As part of our efforts to enhance the effectiveness of cooperation with regional financial institutions, we are engaged in the development of the cooperative loan scheme (Note) in various fields such as business start-up and business revitalization.

Note: A cooperative loan scheme has specific referral rules for projects treated as cooperative loans.

Total of cooperative loan^(Note)

In FY2023, total cooperative loans from regional financial institutions came to: 24,795 loans, 256.9 billion yen.

Note: Loans (guarantees) that are disbursed or decided by both JFC and regional financial institutions after consultation by both parties for loan plans with identical objectives(Calculated by JFC. Including loans made on different dates between both parties).

Collaboration with Chambers of Commerce and Industry, and with Societies of Commerce and Industry

Micro Unit works in close collaboration with regional Chambers of Commerce and Industry, and with Societies of Commerce and Industry throughout Japan to support business improvement of micro/small businesses through providing Managerial Improvement Loans (MARUKEI Loans) and consultation sessions.

Managerial Improvement Loans (MARUKEI Loans) are a program whereby micro/small businesses receiving management guidance, such as from Chambers of Commerce and Industry or Societies of Commerce and Industry, can utilize funds needed for managerial improvement without collateral and guarantors. JFC marked 50 years since the establishment of this program in October 1973, and to date, 5.26 million loans have been provided.

Holding of “One-Day JFC” consultation sessions at Chambers of Commerce and Industry or at Societies of Commerce and Industry

Consultation sessions called “One-Day JFC,” where staff from Micro Unit consult on finance, are held at Chambers of Commerce and Industry or at Societies of Commerce and Industry. Every year, many micro/small businesses come to ask for advice. In addition, we also conduct online consultations to enhance customer convenience.

Cooperation with approved management innovation support organizations ^(Note) such as tax accountants, certified public accountants, and SME management consultants

Management support provided through approved management innovation support organizations such as tax accountant, etc. who play a large role in supporting SMEs and micro/small businesses, and financial support from JFC come together to support micro/small business owners in business sectors like start-ups, management innovation, business revitalization, etc.

Note: Approved management innovation support organizations are support organizations recognized under the Small and Medium-sized Enterprises Business Enhancement Act. Please visit the Small and Medium Enterprise Agency website for more information.

Collaboration with Environmental Health Trade Associations and Environmental Health Business Guidance Centers

The Micro Unit works in close collaboration with such organizations as Environmental Health Trade Associations and Environmental Health Business Guidance Centers to support the maintenance and enhancement of the sanitation levels of environmental health-related businesses, which are closely involved in the daily lives of the public and are subject to strong demands to maintain sanitation levels, through Environmental Health Business Loans. The majority of the borrowers of Environmental Health Business Loans are businesses with nine or fewer employees. Approximately 80% are sole proprietorship, and approximately 70% have been before start-ups or within five years of start-ups.

The Micro Unit handles Educational Loans, which funds necessary expenses when entering educational institutions or continuing one's education, to lighten the financial burden of educational expenses on families and provide equal educational opportunities. Approximately 90,000 Educational Loans were provided in FY2023.

Loans to families with large educational expenses

Educational Loans are primarily provided to families with university or technical college students, who incur large educational expenses.

Loans Secured by Governmental Pensions or Mutual Pensions, etc., are offered only by JFC (or the Okinawa Development Finance Corporation in Okinawa Prefecture) in accordance with the Act on Loans Rendered by Japan Finance Corporation Secured by Public Officers Pension (Act No. 91 of 1954). These loans can be used for a broad range of purposes, including home purchases and business funding. New applications were closed at the end of March 2022 due to the amendment of pension system laws in 2020, with the exception of military pensions and relief pensions.