Regarding Safety Net Guarantee No. 5 certification

This is a national system that provides measures such as setting a separate guarantee limit for small and medium-sized enterprises whose management stability is being hindered due to a deterioration in business conditions, etc.
Eligible small and medium-sized enterprises must receive certification from the mayor of the ward, city, town or village where their head office is located (or the principal place of business for sole proprietors), and then take the certification to a financial institution or credit guarantee association in their area to apply for a guaranteed loan.
For details, please visit the Small and Medium Enterprise Agency (External link) website.
In addition, the city will enter the standard period (30 days including the date of certification) in the "Validity period of this certificate" field.

Certification Criteria

1. Have an establishment with an actual business presence in Inagi City (one year and three months or more) Note: If you have been in business for less than one year and three months, please check the requirements for E3 or E4.
2. Either (a), (b), or (c) below must be met.
　　
(a) Sales requirement
(E1) The business is in a designated industry, and sales for the most recent three months have decreased by 5 percent or more compared to the sales for the same period of the previous year.
(E2) In the case of a business operating in both designated and non-designated industries, sales in the designated industry for the most recent three months must account for 5 percent or more of total sales, and total sales and sales in the designated industry for the most recent three months must each have decreased by 5 percent or more compared to the same period of the previous year.
[Sales requirement (founder)]
(E3) The business is engaged in a designated industry and its sales for the most recent month have decreased by 5 percent or more compared to the average monthly sales for the three months immediately preceding that month.
(E4) In the case of a business that operates in both designated and non-designated industries, the sales in the designated industries for the most recent month must account for 5 percent or more of the total sales, and the sales in the most recent month for the total and for the designated industries must each be down 5 percent or more compared to the average monthly sales for the three months immediately preceding that month.
　　
(b) High crude oil price requirement
(Law 1) The company is engaged in a business that belongs to a designated industry, and (1) the purchase amount of crude oil, etc. accounts for 20 percent or more of the cost of sales for the most recent month, (2) the unit purchase price of crude oil, etc. for the most recent month has increased by 20 percent or more compared to the same month of the previous year, and (3) the proportion of the purchase amount of crude oil, etc. in sales for the most recent three months is higher compared to the same period of the previous year.
(Law 2) If an enterprise is engaged in both designated and non-designated industries, the cost of sales in the designated industries for the most recent month must account for 20 percent or more of the total cost of sales, and (1) the purchase amount of crude oil, etc. must account for 20 percent or more of the total and designated industries' cost of sales for the most recent month, (2) the purchase price of crude oil, etc. for the designated industries for the most recent month has increased by 20 percent or more compared to the same month of the previous year, and (3) the proportion of the purchase amount of crude oil, etc. to the total and designated business sales for the most recent three months is higher than the same period of the previous year.
　　
(C) Profit margin requirement
(H1) The company is engaged in a designated industry and its monthly average operating profit margin on sales for the most recent three months has decreased by 20 percent or more compared to the same period of the previous year.
(H2) In the case of a business that operates in both designated and non-designated industries, sales in the designated industries for the most recent three months must account for 5 percent or more of total sales, and the monthly average operating profit margin for the most recent three months for the entire business and for each of the designated industries must have decreased by 20 percent or more compared to the same period of the previous year.
　　

For details on the certification criteria, please check the Small and Medium Enterprise Agency website (external link) .

To look up industry names and specific examples, please refer to the Japan Standard Industrial Classification (revised November 2007) (external link) .

Application procedure

1. Please gather all the necessary documents and submit them to the Commerce and Industry Section of the Economic Affairs Division.
2. It will take about 5 business days to receive the certificate. Once the certificate is ready, you will be contacted by phone, so please come to the Economic Affairs Division to collect it.
3. An agent may also apply for the certificate.
4. "Last 3 months" means up to 6 months back if the sales figures for the most recent month have not been tabulated. If you apply in November, the period is 3 months from May, which is 6 months earlier. "Last month" allows you to go back up to 4 months. If you apply in November, you can go back to July.

Required documents

1. "Certification application" 1 copy
2. 1 copy of "Sales Status Sheet and Pledge"
3. One copy of documents that can verify the contents (numbers) entered in the certification application form, such as an accounts receivable ledger (for past years, please prepare documents such as financial statements and tax returns. For the current year, please submit a copy of a sales ledger that lists the business name, etc.)　
4. For corporations, one copy of the original or copy of the certificate of all historical matters (issued within the last three months)
5. If you are a sole proprietor, one copy of your final tax return for the most recent fiscal year.

If you require forms other than E1 (E2, E3, E4, Ro1, Ro2, Ha1, Ha2), please contact the Commerce and Industry Section of the Economic Affairs Division.