CGCʼs Basic Principle
1. Benefit SMEs striving to maintain, establish, anddevelop operations
2. H e l p t h e m t o e s t a b l i s h c re d i t w o r t h i n e s s b yevaluating their managerial capabilities, and facilitate
funding by providing credit guarantee backed by apublic institution
3. Assist in reinforcing their bases of operations by
responding flexibly to a diverse range of needs
including consultation,analysis, and the provision of
information
4. By these actions, contribute to the prosperity of suchenterprises and promote strong regional economic
development

1. Objectives of Credit Guarantee Corporation …………………………………………………………… 2
2. History of Credit Guarantee System …………………………………………………………………… 2
3. Recent Topics …………………………………………………………………………………………… 4
4. The Credit Supplementation System …………………………………………………………………… 5

CREDIT GUARANTEE SYSTEM IN JAPANCONTENTS(1) Credit Guarantee System Flow of Operation ……………………………………………………… 6(2) Credit Insurance System …………………………………………………………………………… 7(3) Eligible SMEs and Micro-enterprises ……………………………………………………………… 7(4) Ceiling on Guarantee ……………………………………………………………………………… 8(5) Credit Guarantee Fee……………………………………………………………………………… 8(6) Responsibility-sharing System ……………………………………………………………………… 9(7) CRD ………………………………………………………………………………………………… 10

5. Outline of Credit Guarantee Corporation ……………………………………………………………… 11
6. Financial Support for the Credit Supplementation System …………………………………………… 13
7. Statistics ………………………………………………………………………………………………… 14
8. Outline of Japan Federation of Credit Guarantee Corporations (JFG) ………………………………… 15
9. Supplement ……………………………………………………………………………………………… 18

1

1

Objectives of Credit Guarantee
Corporation

Credit Guarantee Corporations (CGCs) are public institutions that support small and medium enterprises(SMEs and Micro-enterprises) by serving as guarantors to make it easier for them to borrow the funds necessary
for their business operations from financial institutions.
SMEs and Micro-enterprises play an important role in Japanʼs economy. The credit guarantee system improves
the credit worthiness of SMEs and Micro-enterprises, which lack physical collateral and have weak credit
standings. It helps direct funds to them from private financial institutions and provides them with smootheraccess to financing.

CREDIT GUARANTEE SYSTEM IN JAPANA key characteristic of the credit guarantee system in Japan is that it is actually a combination of the credit
guarantee system operated by CGCs, which were mainly established through financial assistance from local
government, and the credit insurance system operated by the Japan Finance Corporation ( JFC) , an institution
owned by the national government. The combination of these two systems is often referred to as the credit supplementation system.

2

History of Credit Guarantee System

The credit guarantee system in Japan dates back to the establishment in 1937 of CGC of Tokyo. Before WorldWar II, there were only three CGCs. Following the war, however, the credit guarantee system was employed as
one of the means of helping the economy to get back on its feet, and CGCs were established around Japan withfinancial support from local government.
Todayʼs CGCs, which were established pursuant to the Credit Guarantee Corporation Law, are corporations
that play an extremely important role in ensuring that SMEs and Micro-enterprises have smooth access tofinancing. CGCs originally took the form of incorporated foundations or incorporated associations, which aretypes of organization prescribed in the Civil Code. However, as their operations expanded, the Credit Guarantee
Corporation Law was enacted to ensure that they could perform their functions properly. In addition, credit
insurance provided by Small Business Credit Insurance Corporation (now JFC), which was established later,
has served to spread the risks incurred by the CGCs, and this combination of two systems developed into what
is now known as the credit supplementation system.
At present, there are 51 CGCs, one for each prefecture and one in each of the cities of Yokohama, Kawasaki,
Nagoya, and Gifu. At the end of 2022, their total liabilities stood at approximately 40 trillion yen.

2

August 1937

Japan's first Credit Guarantee Corporation, CGC of Tokyo, established andregistered

August 1948

Policy Principles for SME Financing (i.e., use of a credit guarantee system)
adopted by the Cabinet

December 1950

The Small and Medium-sized Enterprise Credit Insurance Act enacted(Establishment of Credit Insurance System)

January 1951

National Association of Credit Guarantee Corporation ( later changed to“National Federation of Credit Guarantee Corporations” ) established

August 1953

The Credit Guarantee Corporation Law enacted

July 1958

Small Business Credit Insurance Corporation established as a new organization,
now the Japan Finance Corporation ( JFC) , for providing credit insurance instead of the national governmentʼs special account for SME credit insurance)

July 1963

Small and Medium-sized Enterprise Basic Act enacted

April 2006

Introduction of a Guarantee Fee Rate that Takes Credit Risk into AccountOctober 2007

The Responsibility-sharing System implemented

September 2008

Revision of the Credit Guarantee Corporation Law• Operations of CGCs expanded to include the underwriting of stock warrant
issued by SMEs receiving guarantees, the assumption of claims towards
debtors, and the taking of stakes in revitalization funds• Rules concerning guarantee business support organizations established

November 2008

The National Federation of Credit Guarantee Corporations designated as aguarantee business support organization

December 2012

SME support network established

April 2013

NFCGC changed its English corporate name and abbreviation to “Japan
Federation of Credit Guarantee Corporations” ( JFG)

October 2015

Inclusion of incorporated NPOs in the scope of the credit guarantee system

April 2018

Revision of the Credit Guarantee Corporation Law• Measures including the addition of cooperation between CGCs and financial
institutions, as well as management support services

CREDIT GUARANTEE SYSTEM IN JAPAN

Brief History3

3

Recent Topics(1) Response to Enterprises Affected by the COVID-19 Pandemic

To ensure that SMEs and Micro-enterprises affected by the prolonged COVID-19 pandemic do not face any financial issues, CGCs
throughout Japan continued endeavoring to provide warm support at consultation points, and actively utilized various guarantee programs toprovide unceasing financial support.
１) 2021 (April 2021)
・Established the “Supportive Assistance-Type Special Credit Guarantee Program” and the “Business Improvement Support Credit
Guarantee Program (for COVID-19),” under which the national government will subsidize some credit guarantee fees２) 2022 (October 2022)
・Raised the maximum guarantee amount in the “Supportive Assistance-Type Special Credit Guarantee Program” (from 60 million yen to
100 million yen)
３) 2023(January 2023）
・Extended the service period of the above two programs (from end-March 2023 to end-March 2024)
・Expanded eligibility requirements, etc. for the “Supportive Assistance-Type Special Credit Guarantee Program”
・Started to provide a new refinancing guarantee program (refinancing guarantee for COVID-19)
CREDIT GUARANTEE SYSTEM IN JAPAN(2) Publication of the “Revitalization Package NEXT for SMEs”
and the “Management Guarantee Reform Program,” etc.

The financial support required due to COVID-19 is gradually changing amid growing demand for financing proactive initiatives to improve
profitability and restructure business operations, among others. In September 2022, the “Revitalization Package NEXT for SMEs” (Ministryof Economy, Trade and Industry, Financial Services Agency, and Ministry of Finance) was announced with a view to meeting such fundingneeds for proactive initiatives, while continuing and expanding support for enterprises in line with the gradual transition to the post-pandemicera.
The “Comprehensive Economic Measures for Overcoming Price Increases and Revitalizing the Economy,” approved by the Cabinetin October, includes the establishment of a new credit guarantee program for SMEs and micro-enterprises facing increased debt due tothe pandemic that meets demands for refinance as well as for new capital sources. It also includes the development of measures aimed at
establishing new practices for lending money that do not rely on personal guarantees by the end of 2022.
In December, the “Management Guarantee Reform Program”(Ministry of Economy, Trade and Industry, Financial Services Agency, andMinistry of Finance) was announced with an aim to establish new lending practices that do not rely on personal guarantees.

(3) Establishment of the Guarantee Program for Creating Startups

The “Guarantee Program for Creating Startups” that does not require personal guarantees from management (“management guarantees”)
during the period of starting up was established in 2023, with the objective of paving the way for founders to be able to raise funds without theneed to provide a management guarantee in order to prevent management guarantees from being a disincentive to founding or establishing abusiness, thereby encouraging entrepreneurship and business startups.

(4) Response to Enterprises Affected by Successive Natural Disasters

In response to successive natural disasters, including heavy rains and typhoons from July to September 2022 and heavy snow from
December to January 2023, the government promptly took measures to provide financial support, including activating Safety Net
Guarantee No. 4 (sudden disasters (natural disasters, etc.)).
By actively using these guarantee systems and, for example, flexibly accommodating changes in the conditions of guaranteed loans, theCredit Guarantee Corporations fulfilled the safety-net function, which includes actively providing financial support to enterprises affectedby natural disasters, and worked to contribute to the earliest possible rehabilitation and reconstruction of the disaster-stricken areas.

(5) The extension of the “Great East Japan Earthquake Recovery
Emergency Guarantees” and “disaster-related credit guarantees”

The government approved at a Cabinet meeting an ordinance to extend the deadline applicable to the “Great East Japan Earthquake Recovery Emergency Guarantees” (intended for SMEs and Micro-enterprises that suffered direct or indirect damage inflicted by theGreat East Japan Earthquake) pertinent to SMEs and Micro-enterprises with business offices in the specific disaster afflicted zones, andto “Disaster-related credit guarantees” for SMEs and Micro-enterprises that suffered direct damage inflicted by the Great East Japan
Earthquake, until March 31, 2024.

4

4The Credit Supplementation System

The Credit Guarantee System in Japan is characterized by two functions:(1) a “Credit Guarantee” function that enables CGCs to guarantee financial institutions against
risks associated with loans to SMEs and Micro-enterprises, and(2) a “Credit Insurance” function in which JFC funded by public money reinsures these credit guarantees.
The combination of these two functions is known as the “Credit Supplementation System,”as illustrated in the following chart.

National Government

Supervision

Supervision

Supervision

Contributions / Loans

Credit guarantee fee
subsidies

Fund for Credit Insurance

Credit Guarantee
Corporations

Guarantee
Contract

Financial
Institutions

Supervision

Japan Federation ofCredit Guarantee
Corporations ( JFG)

Compensation
for the loss

(51 CGCs)

Subsidies for compensation assets

Insurance
contracts

Japan FinanceCorporation( JFC)CREDIT GUARANTEE SYSTEM IN JAPANMinistry of Finance
Ministry of Economy, Trade and Industry(Small and Medium Enterprise Agency)

Subsidies for
CGC'S fundLocal Governments

Credit Guarantee
Consignment Contract

Loans

Repayments

SMEs andMicro-enterprises

CreditGuarantee
SystemProvide guarantees on business loans to
SMEs and Micro-enterprises

CGCs

Finance and management consultation andmanagement support for SMEs andMicro-enterprises

CreditSupplementation
SystemCreditInsurance
SystemRecovery from SMEs and Micro-enterprises
considering their actual conditions

JFC

Insurance for credit guarantee which CGCs
provide to SMEs and Micro-enterprises
Loans for CGCs to enable them to expand
the guarantees they offers to SMEs andMicro-enterprises(No such loans have been made since 2008)5

(1) Credit Guarantee System Flow of Operation
5. Loan repayment

Financial
Institutions

4. LoanSMEs andMicro-enterprises

1. Loan applicationeeent
at tee)ra ific
an tiontuarr
ce gua ogatg
di teebrerrer c aran und (Sufogu ent ntee
n
io
it
its
os icat red aym uara
l
c
p
ep
g
D App e of f orernd
1. Issu uest
tu
3.
eq
en
R
ym
Pa
7.

re

4.

2.

C

1.

C

re

di
tg
di
P
ay
tw uara
8.
m
or
nt
e
9. Rigtee
Lo ht nt o hin
f g ess app
an of
lic
in
u
c
re
pa dem aran hec atio
k
ym
n
te
n
e
en ityt(
es f eetfu
nd abli
sh
re
co ed
ve
ry
)

6.

CREDIT GUARANTEE SYSTEM IN JAPANCGCs

1. There are two ways for SMEs and Micro-enterprises to apply to CGCs for credit guarantees. One is to apply
through financial institutions and the other is to apply directly.
2. Upon receipt of an application, CGC carries out credit checks on the enterprise.
3. If CGC approves the application based on the credit checks, it issues a credit guarantee certificate to thefinancial institution. In the case where CGC receives an application for a credit guarantee directly from theenterprise, CGC arranges for a financial institution to extend a loan to the enterprise. After obtaining loan
approval from the financial institution, CGC issues a credit guarantee certificate.
4. The financial institution extends a loan to the enterprise based on the credit guarantee certificate. The
enterprise pays a guarantee fee to CGC.
5. The enterprise makes loan repayments to the financial institution in accordance with the terms and conditionsof the loan.
6. In the event that the enterprise is not able to make all or part of the repayments within the term, the financial
institution requests CGC for payment under guarantee (called subrogation).
7. CGC makes repayments on the loan to the financial institution on behalf of the enterprise.
8. Because payment has been subrogated, CGC obtains a right of indemnity against the enterprise.
9. CGC collect the loan from the enterprise, while assisting it to rebound.

6(2) Credit Insurance System
When a CGC agrees to guarantee a loan after receiving a request to do so from SMEs and Micro-enterprises,
and the loan is granted by a financial institution, the guarantee, provided it meets certain requirements concerning the eligibility of the SMEs and Micro-enterprises, the use of the loan, the amount guaranteed, etc. is insured
through credit insurance pursuant to the Small and Medium-sized Enterprise Credit Insurance Act. In suchcases, the CGC pays the designated premium for the type of insurance involved.
If SMEs and Micro-enterprises that has received a loan guaranteed by a CGC fails to repay it to the financial institution by the designated deadline, the financial institution informs the CGC, and the CGC repays
the loan on behalf of the CGC.
70-90% of the amount repayed is reimbursed to the CGC as insurance money by JFC.

Furthermore, a CGC that has received insurance money, must, after claiming the money, and after reclaiming
all or part of it from the SMEs pay Japan Finance Corporation an amount calculated by multiplying the amountobtained from the SMEs by the proportion of the balance of the insurance money received after reclamation(Article 8 of the same act).

(3) Eligible SMEs and Micro-enterprises
CGCs define the scope of SMEs and Micro-enterprises eligible to receive credit guarantees as follows. SMEs
and Micro-enterprises which either meet the requirements in terms of number of regular employees or paid-up
capital as given in the table below are eligible for credit guarantees (excluding some special industries).
INDUSTRYCAPITALIZATIONNUMBER OF EMPLOYEESManufacturing, etc.

Up to ¥300 million

300 or less

Wholesale

Up to ¥100 million

100 or less

Retail・Food and Beverage

Up to ¥ 50 million

50 or lessServices

Up to ¥ 50 million

100 or lessCorporations whose main businessis a medical business̶

300 or less

CREDIT GUARANTEE SYSTEM IN JAPANIf a CGC repays a loan on behalf of an SME based on an insured guarantee, it must still endeavor to reclaim
the money from the SME (Article 7, Small and Medium-sized Enterprise Credit Insurance Act).

Industries covered by the credit guarantee system are based on the industries designated by the enforcement
regulation under the Small and Medium-sized Enterprise Credit Insurance Act. Agriculture, forestry, fisheries,
financial industry are excluded.

7

(4) Ceiling on Guarantee
Ceilings on guarantee for SMEs and Micro-enterprises are as follows:
INDIVIDUALS / CORPORATIONSCOOPERATIVES, ETC.

General Guarantees¥200 million¥400 million

Guarantees without Collateral¥ 80 million¥ 80 million

Privately-Placed Bond Guarantee¥450 million

̶

Besides the above, many special guarantees have been established based on government measures, and ceilings
are set on these guarantees as appropriate.

(5) Credit Guarantee Fee
CREDIT GUARANTEE SYSTEM IN JAPAN

Credit guarantee fees, the money paid by SMEs and Micro-enterprises to CGCs for guarantees, are used to
pay credit insurance premiums, cover losses when loans are repaid on behalf of SMEs and Micro-enterprises,
administrative expenses relating to the operation of the system, and so on.
Rates for these fees (expressed as an annual percentage of the value of the loan) are determined using the Credit
Risk Database (CRD). There are nine different guarantee fee rates, and the rate applied reflects the financial
position of the SMEs and Micro-enterprises, which is assessed based on their financial statements, as well as
qualitative, nonfinancial factors specific to the SMEs and Micro-enterprises. Note that under the system ofsharing responsibilities with financial institutions, which was introduced in 2007, different fee rates are applied toguarantees that are subject to this system and those that are not.

【Credit Guarantee Fee Rate Classification】(Unit: annual rate %)Classification

1

2

3

4

5

6

7

8

9

Credit guarantee fee rate under
Responsibility-sharing System

1.90

1.75

1.55

1.35

1.15

1.00

0.80

0.60

0.45

(Special Guarantee)(1.62) (1.49) (1.32) (1.15) (0.98) (0.85) (0.68) (0.51) (0.39)

Credit Guarantee fee rate except
Responsibility-sharing System

2.20(Special Guarantee)(1.87) (1.70) (1.53) (1.36) (1.15) (0.94) (0.77) (0.60) (0.43)

2.00

1.80

1.60

1.35

1.10

0.90

0.70

0.50

*1 “Special guarantees” mean revolving guarantee on discounting bill and other instruments, overdraft revolving guarantee and card loans ofbusiness operators.
*2 Credit guarantee fee rates applied to credit guarantee systems employing special insurance, or those to which thesame credit guarantee fee rates are applied nationwide, etc. are determined separately.

8(6) Responsibility–sharing System(1) Purpose

The objective of the Responsibility-sharing System is to have CGCs and financial institutions share their
responsibilities in an appropriate manner, thereby encouraging them to work together to continuously monitor
the business needs of SMEs and Micro-enterprises and provide them with proper support, i. e., loan financing,follow-up management support, help with business revitalization, and so on.
(2) Specific Methods

Partial Guarantee Method

Burden Charge Method

At time of guarantee

At time of guarantee
20%
Nonguaranteed
portion80%
Guaranteed portion

At time of subrogated payment
80%
Amount of subrogated payment
made by CGC

20%
Amount paidby financial
institution

80% is paid in subrogation by the CGC, andthe remaining 20% is paid by the financial
institution.

100%
Guaranteed portion

At time of subrogated payment
100%
Amount of subrogated payment
made by CGC

20%
Contribution

CREDIT GUARANTEE SYSTEM IN JAPANThe Responsibility-sharing System actually comprises two methods, the partial guarantee method and theburden charge method. Financial institutions choose either one of them.
Under the partial guarantee method, a CGC guarantees 80% (with the exception of some guarantees) ofindividual loans, while under the burden charge method, 100% is guaranteed when guarantee is provided and afinancial institution pays a financial assistance by contribution to a CGC in accordance with the state of subrogatedpayment, to bear financial assistance by contribution equal to partial guarantee.

100% is paid in subrogation by the CGC but thefinancial institution pays the CGC burden charge ofapproximately 20% of the subrogation at a later date.

9(7) CRD
CRD (Credit Risk Database) is an organization that gathers and compiles business data (financial/nonfinancial
data and default information) on SMEs and Micro-enterprises. It was established in March 2001 as a voluntary
association comprising mainly CGCs throughout Japan.
It was established with the objective of employing data to assess the financial condition of SMEs and Microenterprises, thereby enabling the credit risk associated with them to be measured, and in turn providing themwith smoother access to financing and enhancing their business efficiency.
Later, as the number of members and the amount of data accumulated increased, the CRD solidified its
position as a key financial infrastructure for business data on SMEs and Micro-enterprises, and in April 2005 it
was incorporated as a limited-liability intermediate corporation. And in June 2009, it became known as the CRD
Association.
Membership Composition（as of July 2023）

CREDIT GUARANTEE SYSTEM IN JAPAN

10

Credit Guarantee Corporations

51

Government-affiliated financial institutions

4

Private financial institutions

95

Credit-rating agencies, etc.

17

Total

167

5

Outline of Credit Guarantee
Corporation(1) Structure(1) Organization Chart (Example)
Next figure shows the organization of a general credit guarantee corporation. Of course larger corporations havemore divided organizations, but the basic structures are the same.
General Affairs Sect.

General Affairs Dept.

Personnel Sect.

Chairman and President

Planning Sect.

Planning Dept.

Senior Executive Director

System Information Sect.

Managing Director

Management Support Sect.

Credit Guarantee Dept.

Directors

Guarantee Sect.
Subrogation Sect.

Guarantee
Administration Dept.

AuditorCollection Sect.

BranchCREDIT GUARANTEE SYSTEM IN JAPAN

Board of Directors

BranchBranch(2) Number of Offices
TYPE OF OFFICEFY2018FY2019FY2020

FY2021

FY2022

Head Office and Branches

186

185

185

185

183

(3) Number of Exective Officers and Staffs
TYPE

FY2018FY2019FY2020

FY2021

FY2022

TOTAL

6,158

6,102

6,056

6,066

6,018

Exective Officer

244

248

246

246

247

Male

4,228

4,159

4,081

4,100

4,044

Femal

1,686

1,695

1,729

1,720

1,727

Staff

11

(2) Funding of Credit Guarantee Corporation(1) Basic Assets
Basic assets is equivalent to the capital of an ordinary corporation.
The basic assets that form the basis of the creditworthiness of CGCs consist of funds and reserves. There are twosources of funds: supporting contributions, which CGCs receive from local governments, financial institutions
and industry organizations, and standard contributions from financial institutions. Standard contributions fromthe financial institutions to CGCs are treated as tax-deductible under the law.
Reserves are the cumulative amount of portions of the yearly income and expenditure balance added to reserves.
As of March 31, 2023

Basic Assets Fund
Funds
Reserves

Financial Assistance+burden charge (Accumulative)
CREDIT GUARANTEE SYSTEM IN JAPAN

Local governments
Financial Institutions
Trade associations

2,105 billion JPY

518 billion JPY
1,587 billion JPY

808 billion JPY
600 billion JPY
207 billion JPY
0.8 billiion JPY(2) Maximum Limit for Guaranteed Liability
The maximum limits for guaranteed liabilities set by CGC are stipulated to be within a certain magnificationof the basic asset fund specified in the articles of incorporation of individual CGC. This multiple is referred to as
Multiple of basic assets fund.
Maximum multiple of basic assets fund is being guided to be regulated less than 60 for the time being, in viewof maintaining the sound management of CGCs.

(3) Borrowing
In addition to the basic assets, part of CGCsʼ funds is borrowed from local governments etc. The borrowed
money is deposited with financial institutions in order to help for Basic Assets expand guaranteed loans to
SMEs and Micro-enterprises.

126

Financial Support for the Credit
Supplementation System

While the operations of CGCs are financed primarily by credit guarantee fees and returns on the investmentof CGC assets, the national government and local governments also provide financial support to the CGCs tostrengthen their financial positions.
Article 25 of the Small and Medium-sized Enterprises Basic Act states that the national government will offer
credit supplementation services and take other measures to ensure that SMEs and Micro-enterprises receive asmooth supply of funds.
The main types of financial support provided by the national government to the credit supplementation system
are as follows:

Subsidies paid by the national government to CGCs to allow JFG to cover losses by CGCs resulting from theuninsured portion of subrogated payments made under guarantees in response to specific funding demand designated by the national government, as well as credit guarantee fee subsidies for COVID-19-related guarantees,etc.

(2) Subsidies for the Improvement and Promotion of BusinessSupport for SMEs
These are subsidies intended to further bolster initiatives for business and startup supports etc. of SMEs andMicro-enterprises that have already received guarantees from CGCs in collaboration with regional financial
institutions. The purpose of such subsidies is to allow SMEs to promote their business improvement.

CREDIT GUARANTEE SYSTEM IN JAPAN(1) Compensation for loss

( 3 ) Investment in Japan Finance Corporation (Fund for Credit
Insurance)
Funds that the national government invests in JFC in order to strengthen the financial foundations of its credit
insurance operations.

(4) Subsidies for CGC fund
Subsidies paid by the national government to CGCs in order to ensure a smooth supply of funds to SMEs andMicro-enterprises and strengthen the financial positions of CGCs. ( No such subsidies have been made since2016.)(5) Loan Fund
Funds that the national government lends at low interest rates to CGCs through JFC to enable them to expand
the guarantees they offer to SMEs and Micro-enterprises. (No such loans have been made since 2008.)

13

7

Statistics

Acceptance of Guarantee 559,867 cases
8,212,285 million JPY(Unit: million JPY,%)(trillion JPY)

FY

Case

Amount2018

633,614

8,072,811

100.3

2019

671,583

8,938,970

2020

1,946,610

2021
2022

Compared rate

(unit: 10thousand cases)

200

40

30

150

110.7

20

100

35,123,414

392.9

10

50

547,134

7,721,985

22.0

0559,867

8,212,285

106.3

2018

2019
2020
Amount

2021
2022
Case

0

CREDIT GUARANTEE SYSTEM IN JAPAN

Outstanding Guaranteed Liabilities 3,164,036 cases
40,420,202 million JPY(Unit: million JPY,%)(trillion JPY)

FY

Case

Amount2018

2,332,923

21,080,871

94.9

2019

2,241,042

20,805,320

2020

3,116,098

2021
2022

(unit: 10thousand cases)

50

350

40

300

98.7

30

250

41,981,685

201.8

20

200

3,155,786

41,881,733

99.8

0

3,164,036

40,420,202

96.5

Compared rate

2018

2019
2020
Amount

2021
2022
Case

0

Payment under Guarantee 30,148 cases
350,955 million JPY(Unit: million JPY,%)

14(trillion JPY)

FY

Case

Amount2018

36,036345,948

98.4

2019

35,337

338,636

97.9

2020

23,213242,955

71.7

2021

20,816

242,551

99.8

2022

30,148350,955

144.7

Compared rate

(unit: 10thousand cases)

1.5

15

1.0

10

0.5

5

0.0

2018

2019
2020
Amount

2021
2022
Case

0

8

Outline of Japan Federation ofCredit Guarantee Corporations ( JFG)

JFG conducts the following operations with the aim of contributing to the healthy development of CGCs,
and thereby providing smooth financing to SMEs. Furthermore, in November 2008, JFG was designated as aguarantee business support organization under the Credit Guarantee Corporation Law.
(1) Surveys and research designed to improve credit guarantee business(2) Surveys and research on financing SMEs
(3) Loan activities to CGCs for strengthening financial bases, compensation for the losses of CGCs, credit
guarantee fee subsidies, and their proper administration(4) Based on the Responsibility-sharing System, calculation, acceptance and payment of burden charge that thefinancial institutions pay to the CGCs
(5) Business activities as Guarantee Business Support Organization(6) Acting as liaison among CGCs, JFC, financial institutions and other affiliated institutions, and provision of
guidance and advice to CGCs
(7) Submission of recommendations, reports and information to related ministries and agencies(8) Information exchange and cooperation with financial and economic organizations(9) Other activities necessary for the Achievement of JFGʼs objectives

CREDIT GUARANTEE SYSTEM IN JAPAN(1) Objectives and Business Activities15(2) Organization
JFG features a variety of committees that supplement the roles of the general meeting and board of directors.
Its administrative bureau comprises General Affairs Department, Business Planning Department, Administrative
Management Department and Digitalization Guarantee Business Promotion Office.
General Meeting

Board of Directors

AuditorChairman and President
GeneralAffairs
Dept.

Executive Vice Chairman
Senior Executive Director
CREDIT GUARANTEE SYSTEM IN JAPANManaging Director
Directors

General Affairs Sect.
Accounting Sect.

Head of
Administration
Legal Sect.
Business
Planning
Dept.

Business Sect.
Planning Sect.

Administrative
Management
Dept.

Administrative Management Sect.
Group Credeit Life Insurance Center

Digitalization of Guarantee Business Promotion Office16

(3) International Operations
CGCs and related organizations work together closely to respond smoothly to requests from foreign countries,
overseas organizations, relating to research they are conducting on Japanʼs credit guarantee system, requests toallow visits by groups of researchers and other people wishing to make inspection tours, and accept invitations
to international conferences relating to SMEs and Micro-enterprises.

CREDIT GUARANTEE SYSTEM IN JAPANAttendance at the 34th ACSIC Conference(Host Institution : Korea Credit Guarantee Fund (KODIT) Venue : Daegu, Korea)

The member institutions of ACSIC currently comprise 17 institutions in 11 countries and one region, including Japan. A conference is held every year.

17

9Supplement(1) Results of Credit Guarantee System
Items

Acceptance of Guarantee

FY(Unit: million JPY)

Outstanding Guaranteed
Liabilities

Payment under Guarantee(with interest added)

CREDIT GUARANTEE SYSTEM IN JAPAN

Cases

AmountCases

AmountCases

Amount2013

731,7129,306,831

3,068,922

29,778,513

60,522650,974

2014

714,340

8,939,404

2,949,589

27,701,740

49,771

526,5702015

694,526

8,967,054

2,796,391

25,761,647

44,338445,256

2016

663,183

8,534,785

2,623,498

23,873,792

40,439397,8962017

632,930

8,051,386

2,473,377

22,215,070

35,984

351,6902018

633,614

8,072,811

2,332,923

21,080,871

36,036345,9482019

671,583

8,938,970

2,241,042

20,805,320

35,337

338,6362020

1,946,610

35,123,414

3,116,098

41,981,685

23,213242,9552021

547,134

7,721,985

3,155,786

41,881,733

20,816

242,5512022

559,867

8,212,285

3,164,036

40,420,202

30,148350,955(2) Use of Credit Guarantee Service
FY2018FY2019FY2020

FY2021

FY2022

Number of SMEs

3,578,176

3,578,176

3,578,176

3,578,176

3,578,176

Number of companies using guarantees

1,220,520

1,180,585

1,554,963

1,583,496

1,585,347

34.1%

33.0%

43.5%

44.3%

44.3%

Guarantee use rate

* Number of SMEs taken from the "White Paper on Small and Medium Enterprises in Japan" compliled by the Small and Medium
Enterprise Agency.

18

(3) The transition of the Basic assets fundFiscal Year

(Unit: million JPY)

2018

2019

2020

2021

2022

Basic assets Fund

1,908,174

1,928,958

1,932,139

2,023,655

2,104,996

Reserves

1,390,948

1,411,311

1,414,205

1,505,448

1,586,677

Item
Funds

517,226

517,647

517,933

518,206

518,319

Fiscal Year

Item

Financial assistance (total)
Local governments
Prefectures

Cities, towns, villages

Financial institutions

Trade associations

2018

2019

2020

2021

2022

807,226

807,647

807,933

808,206

808,319

600,476

600,476

600,476

600,476

600,476

85,90085,90085,90085,90085,900514,577
205,924825

514,577
206,346825

514,577
206,632825

514,577
206,905
825

514,577
207,018
825

NoticeFractions have been rounded off, so the totals for the various items do not necessarily agree with the amounts in the Total column.

(4) The transition of Loan fund etc. from National Government(Unit: 100million JPY)

Items
FY

Subsides forfund of CGCs

Subsidies forFund forcompensationcredit insurance
assetsof JFG

2013

42

41

1,047

2014

42

135

1,088

2015

21

70

600

92

851

40

540

145

1,004

79

639

12,510.9

37,330

60.8

466

32.8

473.2

2016
2017
2018
2019
2020
2021
2022

̶
̶
̶
̶
̶
̶
̶

Loan fund

CREDIT GUARANTEE SYSTEM IN JAPAN(Unit: million JPY)

Subsidies for
Subsidies toimprovement and reduce the credit
promotion ofguarantee fee
business support burden of SMEs

̶
̶
̶
̶
̶
̶
̶
̶
̶
̶

10
̶
12
13
13
11
11
11
15

13,908̶̶

Noticeincludes revised budget.

19

Directory of 51 Credit Guarantee Corporations
CGC

Hokkaido

Aomori-ken
Iwate-ken

Miyagi-ken
Akita-ken

Yamagata-ken

Fukushima-ken
Niigata-ken
Ibaraki-ken

Tochigi-ken

Gunma-ken

Saitama-ken
Chiba-ken
Tokyo

Kanagawa-ken
Yokohama-shi
Kawasaki-shi

Yamanashi-ken
Nagano-ken

CREDIT GUARANTEE SYSTEM IN JAPANShizuoka-ken
Aichi-ken

Nagoya-shi
Gifu-kenGifu-shiMie-kenToyama-ken

Ishikawa-ken
Fukui-ken
Shiga-ken
Kyoto

Postal Code(011) 241-2231(020-0062)

6-2, Nagata-cho, Morioka-shi(019) 654-1500(030-8541)(980-0014)(010-0923)(990-8580)(960-8053)(951-8640)(310-0801)(320-8618)(371-0026)(330-9608)(260-8501)(104-0061)(220-8558)(231-8505)(210-0024)(400-0035)(380-0838)(420-8710)(453-8558)(460-0008)(500-8503)(500-8844)(514-0003)(930-8565)(920-0918)(918-8004)(520-0806)

Okayama-ken

Hiroshima-ken

Yamaguchi-ken
Kagawa-ken

Tokushima-ken
Kochi-kenEhime-ken

Fukuoka-ken

1-47, Kyokuhoku-nishikimachi, Akita-shi
1-1-1, Jhonan-cho, Yamagata-shi

1-20, Mikawaminamimachi, Fukushima-shi

7-1010, Furumachi Dori, Chuo-ku, Niigata-shi
2-2-35, Sakuragawa, Mito-shi
3-1-4, Chuo, Utsunomiya-shi

3-3-1, Otemachi, Maebashi-shi

1-7-5, Sakuragi-cho, Omiya-ku, Saitama-shi
4-17-8, Chuo, Chuo-ku, Chiba-shi
6-17-1, Ginza, Chuo-ku, Tokyo

6-35-1, Sakuragi-cho, Nishi-ku, Yokohama-shi
22, Yamashita-cho, Naka-ku, Yokohama-shi

1-66, Nisshin-cho, Kawasaki-ku, Kawasaki-shi
2-2-1, Iida, Kofu-shi

597-5, Minami-Nagano-Agata-machi, Nagano-shi
5-4, Ote-machi, Aoi-ku, Shizuoka-shi

7-9, Tsubaki-cho, Nakamura-ku, Nagoya-shi
2-12-31, Sakae, Naka-ku, Nagoya-shi
5-14-53, Yabuta-minami, Gifu-shi
6-31, Yoshino-cho, Gifu-shi

3-399, Sakura-bashi, Tsu-shi
2-1-3, Sogawa, Toyama-shi

9-25, Oyama-cho, Kanazawa-shi
2-8-1, Nishikida, Fukui-shi

2-1, Uchide-hama, Otsu-shi(018) 863-9011(023) 647-2245(024) 526-2331(025) 210-5131(029) 224-7811(028) 635-2121(027) 231-8816(048) 647-4711(043) 221-8181(03) 6264-1695(045) 681-7172(045) 662-6622(044) 211-0503(055) 235-9700(026) 234-7288(054) 252-2120(052) 454-0500(052) 201-3041(058) 276-8123(058) 265-4611(059) 229-6021(076) 423-3171(076) 222-1511(0776) 33-1800(077) 511-1300(651-0195)

62-1, Naniwa-cho, Chuo-ku, Kobe-shi(078) 393-3900(640-8158)(680-0031)(690-8503)(700-8732)(730-8691)(753-8654)(760-8661)(770-0865)(780-0901)(790-8651)(812-8555)

3-3-20, Umeda, Kita-ku, Osaka-shi
163-2, Horen-cho, Nara-shi

39, Juniban-cho, Wakayama-shi
3-201, Honmachi, Tottori-shi
1-7, Nada-machi, Matsue-shi

2-12-23, Noda, Kita-ku, Okayama-shi

3-27, Kaminobori-machi, Naka-ku, Hiroshima-shi
4-5-16, Chuo, Yamaguchi-shi

2-2-2-101, Fukuoka-machi, Takamatsu-shi
5-8-8, Minamisuehiro-cho, Tokushima-shi
3-13-14, Kamimachi, Kochi-shi

3-3-8, Chifunemachi, Matsuyama-shi

2-2-1, Hakataeki-minami, Hakata-ku, Fukuoka-shi(06) 6131-7567(0742) 33-0551(073) 423-2255(0857) 26-6331(0852) 21-0561(086) 243-1121(082) 228-5500(083) 921-3090(087) 851-0061(088) 622-0217(088) 823-3261(089) 931-2111(092) 415-2600

Saga-ken(840-8689)

2-1-12, Shirayama, Saga-shi(0952) 24-4341

Kumamoto-ken(860-8551)

4-1-1, Minamikumamoto, Chuo-ku, Kumamoto-shi(096) 375-2000

Nagasaki-ken
Oita-kenMiyazaki-ken

Kagoshima-ken
Okinawa-ken

Japan Federation ofCredit Guarantee Corporations(850-8547)(870-0026)(880-0804)(892-0846)(900-0016)

4-1, Sakura-machi, Nagasaki-shi

3-1-64, Kanaike-machi, Oita-shi
2-23, Miyata-cho, Miyazaki-shi

14-3, Kajiyacho, Kagoshima-shi
3-1-20, Maejima, Naha-shi(101-8534) 2-1, Kandatsukasa-machi, Chiyoda-ku, Tokyo

Please visit our website at https://www.zenshinhoren.or.jp20(022) 225-6491(075) 354-1011(630-8668)

Shimane-ken

2-16-12, Honcho, Aoba-ku, Sendai-shi(017) 723-1351

78, Shijodorimuromachihigashiiruhakoyahokomachi, Shimogyo-ku, Kyoto-shi

Nara-ken

Tottori-ken

2-4-1, Shinmachi, Aomori-shi(600-8009)(530-8214)

Wakayama-ken

Phone No.

14-1, Odori-nishi, Chuo-ku, Sapporo-shi

Osaka

Hyogo-ken

ADDRESS(060-8670)(095) 822-9171(097) 532-8336(0985) 24-8251(099) 223-0273(098) 863-5302(03) 6823-1200

21

CREDIT GUARANTEE SYSTEM IN JAPAN