SME Support Measures Following Zentoshin Bankruptcy Proceedings

On July 24, 2026, the Ministry of Economy, Trade and Industry presented a support policy for small and medium-sized enterprises and small businesses affected by the commencement of bankruptcy proceedings for Zentoshin Co., Ltd. The targets also include businesses concerned about potential future impacts.

The support consists of consultation desks, financing, credit guarantees, and measures addressing existing debt.

Businesses holding accounts receivable and other claims against Zentoshin whose cash flow has been disrupted will be eligible for procedures and advance consultations for applying Safety Net Guarantee No. 1, and can consult on a system that guarantees 100% of the loan amount within a separate limit from the general guarantee.

Relevant institutions will be asked to respond according to the circumstances of affected businesses by changing terms such as granting repayment deferrals for existing debt, expediting lending procedures, and applying collateral requirements flexibly.

Special consultation desks will be established at the Japan Finance Corporation, the Okinawa Development Finance Corporation, the Shoko Chukin Bank, and Credit Guarantee Associations nationwide.

The requirements for safety net loans provided by the Japan Finance Corporation and other institutions will be eased, and eligibility for support will be expanded.

Credit Guarantee Associations will begin advance consultations on Safety Net Guarantee No. 1 for eligible businesses. An Official Gazette notification will be issued on July 31, 2026, and Zentoshin is scheduled to be designated under Safety Net Guarantee No. 1.

Relevant institutions will be asked to implement changes to terms such as repayment deferrals, expedite lending procedures, and apply collateral requirements flexibly according to the circumstances of affected businesses.