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Safety Net Guarantee No. 5 Certification
💡 The Bottom Line
This system helps small and medium-sized businesses and sole proprietors facing economic difficulties to more easily obtain loans guaranteed by the Credit Guarantee Corporation.
🗓 5W1H Overview
👤 Who
SMEs in Ota City belonging to industries designated by the country where business conditions are deteriorating
📋 What
Application for Safety Net Guarantee No. 5 Certification (separate framework guarantee for businesses in deteriorating industries)
⏰ When
During the period designated by the country (certification periods are regularly updated)
📍 Where
City Hall Industrial Future Promotion Division (Counter or mail)
❗ Why
Because a certificate is necessary for businesses strongly affected by the economy to receive a loan guarantee in a separate framework
📝 How
Submit the application form with attached documents comparing sales, and receive the certificate
⏱ After document preparation, about 30 minutes at the counter / A few days for certificate issuance
📖 Easy Explanation
What is Safety Net Guarantee No. 5 Certification?This system is designed to support small and medium-sized businesses and sole proprietors in industries facing nationwide economic downturns. Obtaining this certification makes it easier to receive loans guaranteed by the Credit Guarantee Corporation.## Who is eligible?* Corporations: Companies with their head office registered or main business base in Ota City.* Sole Proprietors: Individuals who are actually operating a business in Ota City.## Certification Criteria (meeting any one of these is sufficient)To use this system, your business must belong to a specific industry designated by the government. Please be sure to check if your industry is designated.### 1. If sales have decreased (Type 5-I)* Small and medium-sized businesses operating in a designated industry, whose sales for the most recent three months have decreased by 5% or more compared to the same period last year.### 2. If raw material costs have soared but cannot be passed on to prices (Type 5-II)* Small and medium-sized businesses operating in a designated industry, where raw material costs (such as crude oil) for producing products have increased by 20% or more, but this increase cannot be reflected in product prices.### 3. If profits have decreased due to external factors (Type 5-III)* Small and medium-sized businesses operating in a designated industry, whose operating profit margin for the most recent three months has decreased by 20% or more compared to the same period last year, due to external factors beyond their control such as exchange rate fluctuations or labor shortages, leading to increased raw material or labor costs.## How to Apply### Where to apply?Ota City Hall 5F, Industrial Future Promotion Division, Financial and Labor Affairs Section2-35 Hamacho, Ota City, Gunma Prefecture 373-8718Phone: 0276-47-1846### When can you apply?Monday to Friday (excluding public holidays)8:30 AM to 12:00 PM1:00 PM to 4:00 PM* Applications received after 4:00 PM will be processed on the next business day.### When will the certificate be issued?The certificate will be issued after 11:00 AM on the second business day following the application reception date (excluding Saturdays, Sundays, and public holidays).## Required Documents* Application Forms: 2 copies (attachments are included in the application form file)* Sales Verification Documents: Documents showing sales for the most recent three months and the same period last year (trial balance, sales ledger, etc.)* For Corporations: A copy of the "Certificate of All Historical Matters" (issued within 3 months)* For Sole Proprietors: A copy of the "Income and Expense Statement" (for white tax returns) or "Blue Tax Return Statement for Income Tax" (for blue tax returns) attached to your latest tax declaration.* If applying by proxy: "Power of Attorney (Letter of Proxy)"## Important Notes* This certification does not guarantee a loan. Financial institutions and the Credit Guarantee Corporation will conduct their own separate reviews.* You can use a copy of the certificate.* "Most recent three months" refers to the three months preceding the month of application (the month in which the application is received at the city hall window) or the month before that.* Do not print application forms and attachments double-sided.* There are several types of application forms depending on your business situation. Please choose the one that fits your circumstances.* Standard requirements (sales decrease, crude oil price hike, profit margin decrease)* Requirements for startups (businesses with less than 1 year and 3 months of history)* For businesses operating multiple types of industries (designated and non-designated industries)* For profit margin decrease requirements, a detailed trial balance showing account items is necessary.
✅ Checklist
- RequiredPrescribed form available at Ota City Hall or the official website.
- RequiredDocuments proving business difficulties due to economic conditions (e.g., order decreases, client bankruptcies).
- RequiredIncome statement for the most recent fiscal year.
- RequiredTax payment certificate issued within the past 3 months.
- RequiredSubmit to the Industrial Policy Division at Ota City Hall.
👥 Who Qualifies
- Corporations with head office registration or main business base in Ota City
- Sole proprietors with actual business operations in Ota City
- Belonging to an industry designated by the government
- Sales for the most recent three months have decreased by 5% or more compared to the same period last year
- Raw material costs have increased by 20% or more, but cannot be passed on to product prices
- Operating profit margin for the most recent three months has decreased by 20% or more compared to the same period last year due to external factors like exchange rate fluctuations or labor shortages
❓ Terms & FAQ
Safety Net Guarantee
A system where the Credit Guarantee Corporation provides a special guarantee, separate from regular guarantees, to help small and medium-sized businesses facing management difficulties obtain loans from financial institutions more easily.
Credit Guarantee Corporation
A public institution that acts as a guarantor when small and medium-sized businesses borrow money from financial institutions. If a company is unable to repay its loan, the Credit Guarantee Corporation repays the financial institution on its behalf.
Designated Industry
Specific business sectors that the government has identified as "nationally experiencing an economic downturn" and requiring support.
Japan Standard Industrial Classification
A national statistical standard for classifying all economic activities in Japan using a common criterion. It is used to confirm which classification your business falls under.
Business Conditions
Refers to the management status of a company or the trends in the economy.
Sales and Other Revenues
Refers to sales revenue and other equivalent income.
Cost of Goods Sold/Product Cost
The total cost incurred to produce a product, including material costs and manufacturing expenses.
Operating Profit Margin
A ratio that indicates how much profit a company makes from its core business relative to its sales revenue. A higher number means the company is earning more efficiently.
Certificate of All Historical Matters
An official document issued by the Legal Affairs Bureau that contains all important information about a company from its establishment to the present (company name, location, officers, capital, etc.).
Income and Expense Statement
A document summarizing the breakdown of income and expenses for a year, used by sole proprietors when filing their final tax return. Primarily used by those filing a white tax return.
Blue Tax Return Statement for Income Tax
A document prepared by sole proprietors filing a blue tax return to summarize their business performance for the year. It includes an income statement and balance sheet, allowing for tax benefits.
❓ FAQ
What is the difference between Safety Net Guarantee No. 5 and No. 2?
No. 5 is for SMEs belonging to specific industries whose business conditions are deteriorating (designated by the country). No. 2 targets individual circumstances such as the bankruptcy of a business partner.
How can I check the target industries?
The list of designated industries is regularly updated by the SME Agency. Check the latest designated industries at the City's Industrial Policy Division or the SME Agency website.
Do I need proof that sales have decreased?
Yes, documents showing that sales in the most recent 3 months have decreased by 5% or more compared to the same period last year are required.
Can I apply as many times as I want?
You can renew the certificate at regular intervals. If business conditions continue to deteriorate, you can continue to use the system.
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