Major Financing Programs of the Tokyo Metropolitan Government
The Tokyo Metropolitan Government (TMG) supports the smooth procurement of financing by small and medium enterprises (SMEs) via a range of programs established in accordance with the Credit Guarantee System. These programs include the "TMG SMEs Loan Program" and "New Guaranteed Loan Program Conducted in Cooperation with Regional Financial Institutions," etc.
Furthermore, with respect to venture companies, by leveraging the "Tokyo Metropolitan Venture Company Development Fund" that has been established in cooperation with private sector interests, etc., the TMG is able to supply such companies with funding necessary for growth, as well as offering them business support.
1. The TMG SMEs Loan Program
This program's establishment is based upon collaboration between the TMG, the Credit Guarantee Corporation of Tokyo (CGCT), and financial institutions. To small and medium enterprise (SME) owners generally felt to suffer from weak creditworthiness and financing procurement deficiencies, the program offers an opportunity to smoothly procure from financial institutions the funding required for business invigoration and stabilization, etc.
Based on the Credit Guarantee System established in accordance with the nationally-enforced Small Business Credit Insurance Act, etc., this is a program independently operated by the TMG via measures such as subsidizing guarantee fees and supplementing interest payments, etc. The TMG entrusts funding that represents the basis of loans to financial institutions, and the financial institutions carry out loans to SME owners in accordance with provisions set forth by the TMG. As a result of the SME owners receiving credit guarantees from the CGCT, they are supplied with funding.
2. New Guaranteed Loan Program Conducted in Cooperation with Regional Financial Institutions
Financial support is offered through cooperation between the TMG and regional financial institutions (credit unions, credit associations, etc.) to those SMEs who, despite having high levels of technical expertise or superior business plans, etc., nevertheless experience trouble in securing the funding necessary to ensure the immediate continuation of their businesses.
This program has been established independently by the TMG to reinforce the "TMG SMEs Loan Program" (described above). The TMG entrusts those funds that represent the basis of loans to regional financial institutions, and support to the SMEs is carried out via the provision of low-interest loans, etc.
3. Tokyo Metropolitan Venture Company Development Fund
Through the "Tokyo Metropolitan Venture Company Development Fund," the TMG supplies funding and offers business support to growing venture companies.
Of the total value of ￥5.5 billion, the TMG has contributed ￥2 billion to the Fund, with input also received from the Organization for Small & Medium Enterprises and Regional Innovation, JAPAN; and certain private sector interests, etc. The Fund offers financing and business support to promising manufacturing venture enterprises (in areas related to energy, semi-conductors/ electronic components, medical equipment, and the environment, etc.). The Fund was established in January of 2013, and it is planned that financing activities will be conducted for approximately seven years thereafter. (However, there might be circumstances whereby the period of financing is curtailed).