On December 5, 2013, a study group published guidelines on keieisha hoshō, personal guarantees given by business owners for their companies’ loans. The Japanese Bankers Association and the Japan Chamber of Commerce and Industry were behind them. The guidelines have applied since February 1, 2014.
The Small and Medium Enterprise Agency describes the background. Personal guarantees can help to discipline management and to ease financing. They have also been pointed out as a factor that keeps owners from bold expansion, from restructuring early and from handing the business on smoothly.