Hachijuni Bank and the Development Bank of Japan have developed a new lending scheme in which a group of smaller businesses embarking on a joint venture assume joint and several liability.
The new scheme makes it easier for financial institutions to extend uncollateralised loans to new ventures.
A new venture set up by five firms in precision machinery and related businesses in Nagano Prefecture has been selected as the scheme's first fund recipient.
The five firms and their venture, called S.I.V., jointly formed a fund, financing it with 10 million yen (US$94,550). The fund also received another 10 million yen from Nagano Prefecture through the local government's initiative providing financial support to small ventures.
