Certification of Safety Net Guarantee No. 5

What is the Safety Net Guarantee System?

This is a national system that provides measures such as separate limits for guarantees to small and medium-sized enterprises that are experiencing difficulties in management stability due to worsening business conditions, etc.
Those small and medium-sized enterprises that are eligible must receive certification from the mayor of the municipality where their main office (or principal business location for sole proprietors) is located, and then bring the certification to a financial institution or the local credit guarantee association to apply for a guaranteed loan.
For more details, please visit the Small and Medium Enterprise Agency's website.
Please note that the "Validity Period of this Certification" section indicated by the city will generally state a period of 30 days, including the date of certification.

• Safety Net Guarantee System (Small and Medium Enterprise Agency)(External Link)

Certification Standards

1. There are business establishments with actual operations in Inagi City (for more than 1 year and 3 months)
   Note: If it is less than 1 year and 3 months, please check the requirements for E3 or E4.
2. Meet any of the following (1), (2), or (3)

(i) Sales Revenue Requirements

• (E-1) The business belongs to the specified industry and has experienced a decrease in sales of more than 5 percent compared to the same period last year in the last three months.
• (E2) If you are engaged in businesses belonging to both specified and non-specified industries, the sales of the specified industry in the most recent three months must account for more than 5 percent of the total sales, and both the total sales and the sales of the specified industry must have decreased by more than 5 percent compared to the same period last year.

[Sales Revenue Requirements (Business Startup)]

• (E3) Engaged in the specified industry, and the sales in the most recent month have decreased by more than 5 percent compared to the average monthly sales of the previous three months.
• (E-4) If you are engaged in both designated and non-designated industries, the sales of the designated industry in the most recent month must account for more than 5 percent of the total sales, and both the total sales and the sales of the designated industry in the most recent month must have decreased by more than 5 percent compared to the average monthly sales of the previous three months.

(ro) Crude Oil Price Requirements

• (Row 1) Engaged in a business that belongs to the specified industry, (1) the cost of goods sold for the most recent month includes a purchase amount of crude oil, etc., that accounts for 20 percent or more, (2) the purchase unit 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, (3) the proportion of the purchase amount of crude oil, etc. in sales for the most recent three months exceeds that of the same period of the previous year.
• (Row 2) If you are engaged in both designated and non-designated industries, the cost of sales for the designated industry in the most recent month must account for more than 20 percent of the total cost of sales, and (1) the purchase amount of crude oil, etc. must account for more than 20 percent of the cost of sales for both the total and the designated industry in the most recent month, (2) the purchase unit price of crude oil, etc. for the designated industry in the most recent month must have increased by more than 20 percent compared to the same month of the previous year, and (3) the ratio of the purchase amount of crude oil, etc. to the sales for both the total and the designated industry in the most recent three months must exceed that of the same period of the previous year.

(h) Profit Margin Requirements

• (H1) The specified industry is being conducted, and the average monthly operating profit margin for the last three months has decreased by more than 20 percent compared to the same period last year.
• (H2) If you are engaged in both designated and non-designated industries, the sales of the designated industry in the most recent three months must account for more than 5 percent of the total sales, and the average monthly operating profit margin for both the total and designated industries in the most recent three months must have decreased by more than 20 percent compared to the same period last year.

For details on the certification criteria, please check the Small and Medium Enterprise Agency's website.

• No. 5: Industries experiencing a downturn (Nationwide) (Small and Medium Enterprise Agency) (External link)

For information on industry names and specific examples, please refer to the Japan Standard Industrial Classification (Revised Edition, November 2007).

• Japan Standard Industrial Classification (Revised Version November 2007)(External Link)

Application Procedures

1. Please prepare the documents and submit them at the Economic Affairs Section, Commerce Division counter.
2. It takes about 5 days (business days) to issue the certificate. We will contact you by phone when the certificate is ready, so please come to the Economic Affairs Section to pick it up.
3. An agent can also apply.
4. The term "recent three months" allows for a maximum retrospective period of up to six months if the sales figures for the most recent month have not been compiled. If applying in November, this refers to the three-month period from May, which is six months prior. The term "recent one month" allows for a maximum retrospective period of up to four months. If applying in November, this can be traced back to July.

Required Documents

1. 1 copy of the Application Form
2. 1 copy of the "Sales Status Report and Affidavit"
3. Documents that can confirm the contents (numbers) stated in the Application Form, such as accounts receivable ledgers, 1 copy (for previous years, please prepare documents such as financial statements and tax returns. For the current year, please submit a copy of the sales ledger, etc., that includes the name of the Business Operators.)
4. For corporations, one original or copy of the certificate of all registered matters (issued within the last 3 months)
5. For sole proprietors, a copy of the final tax return for the most recent fiscal period, 1 copy

Application Form

• Certification Application Form (I-1) (PDF 136.9KB)
• Sales Status Report and Commitment Letter (I-1) (PDF 395.0KB)

If you need forms other than E-1 (E-2, E-3, E-4, R-1, R-2, H-1, H-2), please contact the Economic Affairs Section, Commerce Division.