Chiba Heavy Rain Disaster Gets Credit Insurance and Expanded SME Loans

The Ministry of Economy, Trade and Industry (METI), via METI Notice No. 117 dated September 15, 2026, has designated the disasters resulting from heavy rains starting August 13, 2026, as disasters based on Article 2, Paragraph 5, Item 4 of the Small and Medium Enterprise Credit Insurance Act (Act No. 264 of 1950). As a result, affected SMEs within Chiba Prefecture will be eligible to receive loan guarantees utilizing credit insurance.

The designation was announced in the Official Gazette under the name of Minister of Economy, Trade and Industry Ryosei Akazawa. The target areas extend to 11 cities in Chiba Prefecture: Chiba City, Ichikawa City, Funabashi City, Tateyama City, Matsudo City, Mobara City, Sakura City, Togane City, Narashino City, Kashiwa City, and Ichihara City. The designation period has been set from August 13, 2026, to December 14 of the same year.

Mechanism and Effects of Credit Insurance Designation

The Small and Medium Enterprise Credit Insurance Act is a system in which the state underwrites insurance for Credit Guarantee Corporations when they guarantee debts to financial institutions, in order to facilitate the procurement of business funds for SMEs. Article 2, Paragraph 5, Item 4 serves as the legal basis for designating SMEs whose business operations have been hindered by disasters as eligible for insurance.

Through this designation, it is expected that SMEs in the target areas will find it easier to obtain guarantees from Credit Guarantee Corporations and that financing from financial institutions will proceed smoothly, even if their cash flow has deteriorated due to decreased sales or equipment damage caused by the disaster.

Eligible Affected SMEs

Eligible entities for this designation are SMEs and small-scale enterprises that have been directly or indirectly affected by the heavy rain disaster. The specific support details are as follows:

• Loan guarantees for business funds necessary for disaster recovery
• Expansion of guarantee limits by Credit Guarantee Corporations
• Relaxation of borrowing conditions from financial institutions

Toward Recovery Support for the Regional Economy

In Chiba Prefecture, heavy rains starting August 13, 2026, caused river flooding and inundation, leading to business suspensions and equipment damage for many establishments. This designation serves as a measure to support the business continuity of these affected SMEs and the early recovery of the regional economy.

The designation period is set until December 14, 2026, and affected companies can apply for support through Credit Guarantee Corporations or financial institutions within this timeframe. METI intends to promote support in cooperation with relevant organizations to ensure that SMEs in the affected areas can procure funds smoothly.

Source: METI Notice No. 117 (Published in the Official Gazette on September 15, 2026) — Disaster designation based on Article 2, Paragraph 5, Item 4 of the Small and Medium Enterprise Credit Insurance Act.