Overview of Operations
The Small and Medium Enterprise (SME) Unit provides financial support by offering diverse services, which include loans and credit insurance, to SMEs and micro businesses, which are one of the sources of Japanese economic vitality and the cornerstone of regional economies, to help them grow and develop.
The SME Unit provides in a stable manner funds that SMEs need for their business growth as well as long-term, fixed-interest business funds and supplements loans provided by private financial institutions.
The Roles and Scope of the SME Unit as Policy-based Financing
Policy-based financing in Japan involves providing financial support based on the nation's key policies. These fields include new business development, management innovation, business revitalization and overseas investment. These areas involve high risk that private financial institutions find it hard to support. The SME Unit quantitatively supplements the loans provided by private financial institutions whose lending attitudes may be affected by economic condition, etc.
Based on these policies, while supplementing private financial institutions as a policy-based financial institution specialized in SMEs, the SME Unit supports the growth and development of SMEs through its financial tools as well as serving as a safety net.
Credit Insurance Programs
To facilitate the smooth flow of funds to SMEs and micro businesses, these programs focus on the acceptance of insurance on Credit Guarantee Corporation (CGC) guaranteed liabilities associated with loans to SMEs and micro businesses.
- Insurance on Credit Guarantee Corporation (CGC) guaranteed liabilities involving loans to SMEs and micro businesses
- Loans to CGCs
- Special Insurance Programs for Mid-size Enterprises
- Transitional Operation of the Machinery Credit Insurance Programs (Note)
(Note) Excluding insurance that had been accepted up to the end of March 2003, the SME Unit currently pays on insurance money and receives recoveries based on insurance contracts that are already in force.
Securitization Support Programs
With the aim of facilitating the smooth supply of unsecured funds to SMEs, these programs support private financial firms and other institutions in their endeavors based on securitization methods. Securitization support methods consist of the "Purchase-type," "Guarantee-type" and "Securitization of Account Receivables."