The ODFC's Unique Funding Systems
Responding to Regional Issues Facing Okinawa
In addition to implementing similar funding systems to the Japan Finance Corporation, ODFC promotes policy-based financing that is closely tied to the region, utilizing various unique funding schemes that are linked with national and Okinawa-led Okinawan economic promotion policies that serve to respond to regional issues facing Okinawa.（ As of April 2015 ）
| Type of Loans/Investment | Use of Fund | Name of Fund | Limit to Loans/Investment | |
|---|---|---|---|---|
| Electricity | ・ Funding necessary for the acquisition and upgrading of power generation facilities, power transmission facilities, transformer facilities, power distribution facilities, and communications facilities | Industrial development loans | 80% of the necessary funds | |
| Gas | ・ Funding necessary for the acquisition and upgrading of gas making facilities and gas supply facilities | |||
| Marine Transportation | ・ Funding necessary for the construction and upgrading of ships servicing Okinawa’s isolated islands with a gross tonnage of less than 1,000 tons ・ Funding necessary for the construction and upgrading of passenger ships and freighters with a gross tonnage of 1,000 tons or more |
70% of the necessary funds （80% of in-service ships traveling to Okinawa’s isolated islands and on overseas routes） |
||
| Aircrafts | ・ Funding necessary to purchase facilities contributing to maintaining regular services | 70% of the necessary funds | ||
| ・ Funding necessary to purchase aircraft, etc. | 80% of the necessary funds | |||
| Self-sufficient economic development in Okinawa | ・Funding necessary for specific businesses contributing to the promotion and development of industry tasked with developing a privately-led self-sufficient economy in Okinawa （efforts to integrate the communications industry, transport system upgrade businesses, overseas expansion by business owners within the prefecture） ・Funding, etc. necessary for the construction, upkeep and administration, etc. of facilities run through the efficient and effective use of private funds, management capabilities and technical capabilities ・Funding necessary to upgrade facilities needed for business operations disposing of waste in an appropriate manner ・Funding necessary to acquire facilities used to introduce renewable energy ・Non-facility based business funding |
70% of the necessary funds | ||
| Basic loans | ・Funding necessary for the acquisition, upgrading and repair of facilities used by business operations contributing to the development and promotion of industry in Okinawa | |||
| Development promotion loans for remaining military station sites | ・ Funding necessary to maintain and upgrade facilities contributing to the development of remaining sites, promoting the development remaining military station sites （industry development loans include funds necessary to prepare land for construction works） | Industrial development loans | 70% of required fund |
|
| Small and medium-sized enterprise loans | 720,000,000 yen | |||
| Micro business loans | 72,000,000 yen | |||
| Loans for the promotion of the Okinawan tourist resort industry | ・ Funding necessary for business operations contributing to the promotion of the tourist resort industry in consolidated areas based on national or prefectural tourism-related initiatives | Industrial development loans | 70% of the necessary funds | |
| Small and medium-sized enterprise loans | 720,000,000 yen | |||
| Micro business loans | 72,000,000 yen | |||
| Loans funding the development of specific sites, such as international logistics hub industry integrated region | ・Funding necessary for business operations in international logistics hub industry integrated region, and areas promoting industrial advancements and business reform | Industrial development loans | 70% of the necessary funds | |
| Small and medium-sized enterprise loans | 720,000,000 yen | |||
| Micro business loans | 72,000,000 yen | |||
| Loans for supporting Okinawa information-communication industry | ・ Funding necessary for information and communications-related business operations in zones designated based on national or prefectural information and communications industry promotion measures, and funding necessary for businesses fostering and dispatching information and communications personnel that contribute to the promotion of the information and communications industry | Industrial development loans （Information and communications-related industries only） |
70% of the necessary funds | |
| Small and medium-sized enterprise loans | 720,000,000 yen | |||
| Micro business loans | 72,000,000 yen | |||
| Loans for the Promotion of Okinawa Local products | ・Funding necessary for the development, manufacture and sale of products that utilize natural Okinawan resources ・ Funding necessary for the manufacture and sale of products using unique Okinawan techniques and know-how |
Small and medium-sized enterprise loans | 720,000,000 yen | |
| Micro business loans | 72,000,000 yen | |||
| Support loans for persons founding businesses in Okinawa | ・Funding necessary for new business operations, etc. using technologies pertaining to patent rights, utility model rights and other intellectual property rights, and technology development-related subsidies, etc. ・ Funding, etc. necessary for new business development which would result in employment creation |
Small and medium-sized enterprise loans | 720,000,000 yen | |
| Micro business loans | 72,000,000 yen | |||
| Loans for reinforcing management bases of Okinawa small & medium sized enterprises |
・ Funding necessary to strengthen the operating foundations of small and mid-size companies with approved business innovation plans in specific industries set forth in the Act on Special Measures for the Promotion and Development of Okinawa | Small and medium-sized enterprise loans | 720,000,000 yen | |
| Micro business loans | 72,000,000 yen | |||
| Loans for promoting Okinawa isolated islands | ・ Funding necessary for business operations contributing to the promotion of industry and the revitalization of the economy in isolated islands within Okinawa Prefecture | Small and medium-sized enterprise loans | 720,000,000 yen | |
| Micro business loans | 72,000,000 yen | |||
| Loans for strengthening employment and business foundations in Okinawa | ・ Funding necessary to enhance business operations for persons and companies receiving guidance for the strengthening of their business provided by commercial and industrial associations and the Chamber of Commerce and Industry based on Okinawan employment/business operating foundation enhancement initiatives set forth by Okinawa Prefecture | Micro Business Loans | 20,000,000 yen | |
| Loans for the clarification of location boundaries | ・ Funding necessary to acquire land, leaseholds, buildings, etc. accompanied by the clarification of the boundary locations of replotted land within areas with unknown boundary locations | 80% of the necessary funds（Maximum of 15 million yen） | ||
| Loans for developing human resources in Okinawa | ・ Funding necessary to receive higher education at a university, etc. after gaining qualifications equivalent to that of graduating from high school | Educational loans | 2,000,000 yen for each student | |
| Loans for promoting Okinawa brands | ・ Funding necessary for business operations strengthening the competitiveness of agricultural, forestry, and fisheries products （strategic items） produced on production sites approved by the prefecture and designated by the competent minister | Primary sector loans (agriculture, forestry, fisheries) | 80% of the necessary funds 72,000,000 yen for businesses engaged in agriculture, forestry or fishing |
|
| Loans for improving management of Okinawa agriculture, forestry and fisheries | ・Funding necessary to upgrade, prepare, or acquire agriculture-related facilities, farming equipment, and facilities required to process, distribute and sell forestry products ・Funding necessary to remodel, construct, or acquire fishing vessels （under 20t） |
Either 13,000,000 to 300,000,000 yen set based on the intended use of funds, or 80% of the necessary funds, whichever the lower amount is | ||
| Loans for sugar manufacturing enterprises and others | ・ Funding necessary to remodel, prepare, or acquire the facilities needed to refine sugar or manufacture tinned pineapple goods, and the funding necessary for industrial rationalization accompanying mergers involving manufacturers in this field. | 80% of the necessary funds | ||
| Loans for seafood processing facilities | ・ Funding necessary to remodel, prepare, or acquire the facilities needed for the manufacture and processing of aquatic plants and animals as raw ingredients and materials | |||
| Loans for persons starting a business dealing with Okinawan agriculture, forestry, livestock or marine products | ・ Funding necessary to develop products that use agriculture, forestry, livestock, and fisheries produce, etc., and for the selective breeding of agriculture, forestry, livestock, and fisheries produce | 48,000,000 yen | ||
| Isolated islands/depopulated areas | ・ Special loan amounts providing funds for the new construction of, or renovating of hospitals, etc. on isolated islands/depopulated areas | Medical service loans | 100% of the necessary funds | |
| Loans for red tile houses | ・ Funding necessary to tile personal house roofs with red tiling | Housing loans | 60% of the necessary funds | |
| 14,100,000 yen to 20,700,000 yen based on floor space and site construction | ||||
| Investments for the creation of new businesses | ・ Funding for persons looking to start a new business, persons for which five years has not passed since the start of their business, and persons opening new business fields | Investments | Up to 50% of the capital required to start the new business | |
| Name of Scheme | Contents of Scheme |
|---|---|
| Low interest rates for the promotion of employment | ・ Where Loans for the promotion of the Okinawan tourist resort industry, Loans funding the development of specific sites, such as international logistics hub industry integrated region, and Loans for supporting Okinawa information-communication industry apply, preferential treatment in terms of the interest rate conditions that apply for the first three years of the loan shall be set for projects that will maintain and expand employment |
| Low interest rates for the prevention of red soil and other forms of erosion （Churaumi low interest rates） |
・ Of the equipment funds, etc. to which existing funding schemes implemented by ODFC apply, the “Ordinance on the Prevention of Red Soil Erosion in Okinawa” applies, and for business operations which keep the suspended matter in muddy water being discharged to 100mg/l or less, lower than the standard prescribed in this ordinance (200mg/l), the interest rate initially applied to the loan will be reduced by a further 0.2% for the first five years of the loan. |
| Special provisions for education loans for low-income earners | ・ Special interest rate provisions apply to education loans taken by persons under a certain income range |
| Special interest rates for education loans for persons located on isolated islands | ・ Special interest rate provisions apply to education loans taken by persons commuting to schools in another area besides the island of their residence from an isolated island in Okinawa Prefecture |
| Special interest rates for loans without collateral in designated areas of Okinawa | ・ Special interest rate provisions apply to loans for the funding necessary for persons engaged in select industry fields, etc. designated by special zones/region schemes set forth in national and prefectural measures to setup new business locations and to install earthquake proof countermeasures as part of industry development loans and small and medium-sized enterprise loans |