This is a translation of the Japanese original. The Japanese version is authoritative; figures follow Japanese law and official sources.
Loans backed by a Credit Guarantee Corporation (信用保証協会) carry a guarantee fee on top of interest, at rates of up to 1.90% a year. Under the Monitoring-Enhanced Special Guarantee Program (モニタリング強化型特別保証制度), launched on March 16, 2026, the national government pays half of the guarantee fee for applications filed by March 31, 2027. It is the highest subsidy rate among guarantee programs currently open. The one condition: work with a certified management innovation support institution (認定経営革新等支援機関) to track finances and cash flow every month and report on them. This article covers how much you save, who qualifies, how to apply, and what you must do after borrowing, based on documents from the Small and Medium Enterprise Agency and the guarantee corporations.
The short answer: apply by the end of March 2027 and the fee is halved
The core terms, all from the SME Agency's published materials[SME Agency, March 2, 2026].
| Item | Monitoring-Enhanced Special Guarantee |
|---|---|
| Who can use it | SMEs (including sole proprietors) that pledge to work with a certified support institution to track finances and cash flow monthly and report on them |
| Guarantee limit | ¥280 million (¥200 million ordinary + ¥80 million unsecured; ¥480 million for cooperatives) |
| Guarantee fee rate | 0.45%–1.90% a year (9 tiers) |
| National subsidy | Applications from March 16, 2026 to March 31, 2027: half of the fee |
| Borrower's effective rate | 0.23%–0.95% a year |
| Guarantee term | Up to 10 years for installment repayment (1 year for lump sum). Grace period up to 1 year for working capital, 3 years for equipment |
| Use of funds | Business funds (working capital and equipment) |
| Coverage | Shared responsibility (corporation 80%, lender 20%) |
| Guarantors | No joint guarantors other than the company's representative, as a rule |
| Program period | Applications through March 31, 2029 (subsidy from April 2027 onward undecided) |
Sources: SME Agency announcement and its explanatory material for certified support institutions[SME Agency material].
Two points matter. First, the subsidy rate: the Coordinated Support Special Guarantee that began in March 2025 dropped to one third from April 2026[SME Agency, coordinated program]. Second, the deadline: the subsidy is only confirmed for applications filed by March 31, 2027.
How much you save: ¥60,000–¥260,000 on a ¥10 million, 5-year loan
The fee is "loan amount × rate × term × installment factor". Using the Tokyo Credit Guarantee Corporation's formula and rates, we estimated a ¥10 million loan repaid in 60 equal monthly installments[Tokyo CGC, calculation method]. The post-subsidy rates are those in the SME Agency's table.
| Tier | Normal rate | Normal fee | Rate after subsidy | Fee after subsidy | Subsidy |
|---|---|---|---|---|---|
| Tier 1 (highest) | 1.90% | ¥522,500 | 0.95% | ¥261,250 | ¥261,250 |
| Tier 5 (used when there are no financial statements) | 1.15% | ¥316,250 | 0.58% | ¥159,500 | ¥156,750 |
| Tier 9 (lowest) | 0.45% | ¥123,750 | 0.23% | ¥63,250 | ¥60,500 |
Our estimate (¥10 million, 5 years, 60 installments, factor 0.55). Rates are Tokyo CGC's "over ¥10 million, unsecured" tiers[Tokyo CGC rate structure]; post-subsidy rates from the SME Agency[SME Agency]. Rates differ by corporation.
- "Condition change" fees charged when repayment terms are modified
- The surcharge for the borrower-selected no-personal-guarantee option
- Discounts that normally apply (collateral, accounting advisor companies, etc.) are not applied under this program
The condition: pledge to review cash flow every month with a certified support institution
There is a single eligibility requirement: submit a written pledge that you will work with a certified management innovation support institution to track your finances and cash flow monthly and report on your business condition[SME Agency]. There is no sales-decline test and no industry designation.
Certified support institutions are individuals and organizations with a certain level of expertise and experience in tax, finance and corporate accounting, certified by the national government. Tax accountants, CPAs, SME management consultants, chambers of commerce and financial institutions hold the certification. Another 362 were certified in August 2026, and you can search for them in the SME Agency's system[SME Agency, certified institutions]. If your own tax accountant is certified, that is the shortest path.
| Check | Details |
|---|---|
| Who is the institution | Whether your tax accountant or accounting firm is certified; if not, use the search system |
| If the institution is the lending bank itself | That bank's unguaranteed ("proper") loans must make up at least 50% of your total bank borrowing |
| Document to submit | The program's "applicant eligibility declaration and pledge", in addition to the corporation's standard forms |
| How the limit works | ¥280 million is per company, aggregated across corporations. Unlike the Management Improvement Support Guarantee, it is not described as a separate quota; the figure equals the ordinary limit |
Source: SME Agency material for certified institutions[SME Agency]. If you already have guaranteed loans, confirm the available amount with your corporation.
After borrowing: monthly tracking and an annual report for five fiscal years
The price of this program is reporting. The monitoring period runs for five fiscal years starting with the year the loan is disbursed[SME Agency material]. There are three tasks.
| Task | Frequency | Deadline and recipient |
|---|---|---|
| Monthly tracking of finances and cash flow | Every month | Done with the support institution by the end of the following month. Use the reference "monthly management sheet" or your own format. Not submitted |
| Monitoring report | Once a year | Companies with April–September year-ends submit in December; those with October–March year-ends and sole proprietors submit in June, to the lender. The first year's report is combined with the second year's |
| Report on changes in business condition | When triggered | If a cash shortfall is expected within six months, submit promptly to the lender with the latest financial statements (and a cash flow plan). The borrower, institution, lender and corporation then discuss a support policy together |
For example, a March year-end company that borrows in May 2026 does its first monthly review of May figures during June 2026, and its last of March 2031 figures during April 2031. If the loan is repaid in full during the period, no further reports are needed.
The program exists to catch early signs of trouble and bring the four parties together early. If your tax accountant already reviews your monthly figures, the extra work is minimal.
How to apply: through your bank
Guarantee applications go through either a financial institution or the guarantee corporation. Most borrowers apply for the loan and the guarantee together at the bank, which forwards the documents to the corporation[Federation of Credit Guarantee Corporations, application flow]. Eligible lenders are those with an agreement with the corporation.
- Choose the certified support institution. Check whether your tax accountant is certified; otherwise use the SME Agency's search system.
- Tell your bank you want to borrow under the Monitoring-Enhanced Special Guarantee. Prepare the purpose (working capital or equipment), amount and repayment term. Grace periods are up to 1 year for working capital and 3 years for equipment.
- Gather the documents. The corporation's standard forms (guarantee application, applicant summary, guarantee request, consent on personal data), tax returns or financial statements, the company register and a seal certificate, plus the applicant eligibility declaration and pledge.
- Wait for screening. If the bank finds the loan appropriate, it sends the file to the corporation, which screens and approves the guarantee.
- Pay the fee at disbursement. The fee is paid through the bank when the loan is disbursed, calculated at the post-subsidy rate (0.23%–0.95% a year).
- Start monthly tracking the following month. Keep the monthly sheet with your institution and prepare for the annual report.
Documents per the Federation's list[Federation] and the SME Agency material. Corporations and programs may require extra documents.
How the fee is calculated, the nine rate tiers and the treatment when there are no financial statements are covered in our article on credit guarantee fees. If you are newly founded and also considering the Japan Finance Corporation, see JFC start-up loan conditions.
Versus the Coordinated Support program: different subsidy, different obligation
The Coordinated Support Special Guarantee launched in March 2025 uses the same ¥280 million limit and 0.45%–1.90% rates and also subsidizes the fee. The differences are the subsidy rate and what is asked of the borrower[SME Agency, coordinated program].
| Item | Monitoring-Enhanced (from March 2026) | Coordinated Support (from March 2025) |
|---|---|---|
| What is required | Monthly tracking and annual reports with a certified institution (5 fiscal years) | Option 1: receive an unguaranteed loan of at least 10% of the guaranteed loan at the same time Option 2: draw up and report on a management action plan with the bank's support |
| Subsidy (applications April 2026–March 2027) | One half | One third (one quarter under option 2) |
| Subsidy (from April 2027) | Undecided | One quarter through March 2028 |
| Program deadline | March 31, 2029 | March 31, 2028 |
Companies too small to obtain an unguaranteed loan alongside, or that already review monthly figures with a tax accountant, will find the monitoring program easier. If you cannot set up monthly reporting, option 1 of the coordinated program is the realistic route.
Points to watch: the subsidy depends on the application date
- The deadline is the application date. Applications received by the corporation by March 31, 2027 qualify for the half subsidy, regardless of when the loan is disbursed.
- April 2027 onward is undecided. The program runs to March 2029, but whether and how much will be subsidized is not set.
- The fee is paid in one lump sum. Tokyo CGC does not allow installment payment of the fee when a subsidy is received[Tokyo CGC, installment payment].
- Interest is separate. Only the guarantee fee is subsidized; interest is set by the lender.
- Shared responsibility. The corporation covers 80% and the lender bears 20%, so the bank's usual screening applies.
What to do today
- Ask your tax accountant whether they hold the certified support institution status. If not, search for one nearby in the SME Agency's system.
- Prepare your latest financial statements and monthly trial balance, and summarize the amount, purpose and term you want on one page.
- Talk to your bank about the Monitoring-Enhanced Special Guarantee, working backward so the application lands by March 31, 2027.
FAQ
Can sole proprietors use it?
Yes. The program is for "SMEs", and the SME Agency material sets the reporting deadline for "SMEs with October–March year-ends (including sole proprietors)" as June. Sole proprietors close on the calendar year, so they submit the monitoring report to the bank every June.
My tax accountant is not a certified institution. What should I do?
Use the SME Agency's search system to find one by region or specialty. The lending bank itself can act as the institution, but only if its unguaranteed loans make up at least 50% of your total bank borrowing.
How is the subsidy received?
You do not claim it afterward. The fee you pay through the bank at disbursement is already calculated at the post-subsidy rate (0.23%–0.95% a year). Tokyo CGC states the customer's share as 0.23%–0.95%.
Can it be used to refinance existing loans?
The use of funds is "business funds (working capital and equipment)", and the published materials do not address refinancing. If you intend to refinance existing guaranteed loans, confirm with the corporation and the bank before applying.
What happens if I do not report?
The program rests on a written pledge, so reporting is an obligation. The materials mention no penalty, but it is reasonable to expect a breach to affect future guarantee screening. Decide early which parts your tax accountant will handle so the routine sticks.
Sources
- SME Agency: new guarantee programs to detect early signs of change in SMEs' condition (March 2, 2026) — outline, subsidy rate, period
- SME Agency: monitoring under the program (for certified institutions) — subsidy by tier, monthly tracking, report deadlines
- SME Agency: Coordinated Support Special Guarantee (March 14, 2025) — comparison program
- SME Agency: certified management innovation support institutions — overview and search system
- Tokyo CGC: launch of the Monitoring-Enhanced Special Guarantee — customer share, documents
- Chiba CGC: Monitoring-Enhanced Special Guarantee — a regional example
- Federation of Credit Guarantee Corporations: application flow — channels and documents
- Federation: conditions of use — the ¥280 million limit
- Tokyo CGC: fee calculation — formula used in our estimate
- Tokyo CGC: rate structure — the nine tiers
- Tokyo CGC: installment payment — not available with a subsidy
Fee estimates apply the SME Agency's post-subsidy rates to Tokyo CGC's formula and rates. Rates, documents and handling differ by corporation; check the SME Agency and your corporation for the latest terms.
