Business succession funds

Last update date May 1, 2024

Financing terms and conditions
required documents
Flow until receiving loans
Loan consultation and application (financial institutions)
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Financing terms and conditions

Business succession funds
Financing target	Those who fall under any of the following A person who intends to take over the business after receiving a transfer of business assets, etc. from a business that has difficulty in business continuity A person who intends to consolidate the shares of the operating company through the holding company for the purpose of consolidating management rights. Those who need funds for acquisition of voting rights, acquisition of business assets, or tax payment for inheritance tax and gift tax, etc. after the business succession (borrowing by individual representatives is also possible) Those who need funds to acquire shares and business assets of businesses that have difficulty in business continuity in order to carry out business succession through M&A, etc. Those who need funds to acquire shares and business assets of businesses that have difficulty in business continuity in order to carry out business succession through EBO (acquisition by employees) etc. (limited to individuals who do not operate business) With the support of the Yokohama City Credit Guarantee Association, the Yokohama Corporate Management Support Foundation, handling financial institutions, or other certified management innovation support organizations, formulate a business succession plan for business succession within 10 years, and implement the plan. Those who have taken over the business from the successor and have not passed 3 years
Use of funds	Eligible recipients 1: Capital funds required for business succession (including accompanying working capital) Financing target 2: Capital funds to acquire two-thirds or more of the total number of voting rights held by the holding company’s successor Eligible recipients 3 to 5, 7: Working capital and equipment funds Eligible recipients 6: Working capital and equipment funds necessary for implementing the business succession plan
Loan amount	Within 280 million yen
Interest rate (annual interest rate)	Described interest rate of the financial institution
Financing period	Working capital within 10 years Capital capital (within 12 months, except for loan target 2 includes 18 months of deferment)
Collateral	Collateral as necessary
Guarantee fee rate	Eligible recipients 1 to 4, 6, 7: 0.20 to 1.65% (0.25% subsidy) Eligible recipients 5: 0.90% (0.25% grant) (All grant is limited to 50 million yen in loans.)

required documents

Credit Guarantee Contract Application Form (Form prescribed by Yokohama City Credit Guarantee Association)
private seal certificate (* 2 and 3) of the applicant (individual / corporate) and joint guarantor (* 1)
Tax payment certificate (* 2) or copy of receipt (Yokohama municipal tax with delivery date)
Copy of financial statements (final income tax return) (in principle, for the last two years)
A corporation obtained through a certificate of all history items (commercial register copy) or a registration information provision service (* 2, 3)
In the case of a licensing business, a copy of the license certificate
Capital funds are copies of quotes, layouts, catalogs, etc.

※1 When a joint guarantor is required
※2 Certificates must be up to 3 months
　　　You can apply for a tax payment certificate online.
※3 Copy is acceptable when applying for the Yokohama City Credit Guarantee Association

In addition to 1 to 7, documents required for each loanee
Financing target	required documents
Eligible recipients 1	Explanation documents related to the transfer of business assets such as business transfer agreement (copy)
Financing target 2	Business succession plan (optional style) Describe the following contents: (1) Type of Business Succession (2) Outline of Holding Company and Operating Companies (3) Shareholder composition and equity ratio of the Holding Company (4) Shareholder composition and equity ratio before and after implementation of the plan of the operating company (5) Income and Expenditure Plan for Holding Company and Operating Companies (6) Background and Reasons for Business Succession (7) Valuation of shares of operating companies (8) Fundraising methods Stock evaluation calculation report (optional form) prepared by a tax accountant Shareholder registry of the holding company and operating companies A copy of the final tax return of the operating company, a copy of the commercial register, a copy of the Articles of Incorporation and a certificate of private seal
Eligible persons 3-5	Certificates (copy) (including a copy of the application form) according to the provisions of the Enforcement Regulations of the Law Concerning Succession of Management in Small and Medium Enterprises Documents to be submitted for certification (copy)
Eligible recipients 6	Business succession plan (optional style) 　Describe the following contents: Name of the certified management innovation support organization
Eligible recipients 7	Explanation documents related to the transfer of business assets such as business transfer agreement (copy)

Flow until receiving loans

①Small and medium-sized enterprises consult and apply for loans to the nearest financial institution.
②After reviewing the loan, the financial institution requests a guarantee from the Yokohama City Credit Guarantee Association.
③The Yokohama City Credit Guarantee Association will determine the guarantee after examination of the guarantee.
④Financial institutions provide loans.

※In using the Yokohama Small and Medium Enterprise Loan System, there is a screening by financial institutions and the Yokohama City Credit Guarantee Association.
In addition, the contents of each fund are intended to provide an overview, and do not guarantee that any loan will be executed or guaranteed consent.

Consultation and application for financing (financial institutions: in Japanese alphabetical order)

List of Financial Institutions
Shinkin Bank	Kanagawa, Kawasaki, Sawayaka, Shiba, Shonan, Jonan, Setagaya, Yokohama
Banking Corporation	Awa, Kanagawa, Kiraboshi, Gunma, Shizuoka, Shizuoka Chuo, Suruga, Daiko, Daishi Hokuriku East Japan, Hokuriku, Mizuho, Sumitomo Mitsui, Mitsubishi UFJ, Yamanashi Chuo, Yokohama, Resona
Government-affiliated financial institutions	Shoko Chukin Bank