Acceptance of Requests for Consultation from SMEs, Small Enterprises and Other Entities Affected by Novel Coronavirus Disease to Start; Concerning Support Measures for Financing and Subsidy Program for Sustaining Businesses
April 8, 2020
*This press release was revised on April 13 due to change of the telephone number at the consultation counter and FAQ.
In response to the Cabinet Decision made on the FY2020 Supplementary Budget Draft, the Ministry of Economy, Trade and Industry (METI) will begin accepting requests for consultations from SMEs and small enterprises concerning issues related to subsidies, in addition to requests for consultations related to financing, at the SME Financial and Subsidy Consultation Counter.
On April 7 (Tue.), 2020, the government compiled the Emergency Economic Measures for Addressing the Novel Coronavirus Disease and a Cabinet Decision was made on the FY2020 Supplementary Budget Draft.
1. Supporting SMEs and small enterprises in financing
METI will further expand the existing measures for supporting such companies in financing and undertake the following measures.
- Permit companies to refinance their current debts such as loans from governmental financial institutes or Credit Guarantee Corporations to substantially interest-free loans; and
- Permit companies to newly make use of loan programs provided by private financial institutes in which companies are able to borrow substantially interest-free loans without collateral and with a grace period of up to five years for principal.
2. COVID-19-related Subsidies for sustaining businesses
This program targets companies facing severe conditions in particular and provides them with subsidies for a wide variety of purposes that in general are considered effective in supporting them in sustaining or reviving their businesses.
Concerning requests for consultations on these programs above, please feel free to contact the SME Financial and Subsidy Consultation Counter below.
FAQs concerning the COVID-19-related Subsidy Program for Sustaining Businesses
When will METI begin accepting applications for the subsidies?
METI has not yet started accepting such requests. It is scheduled to start approximately one week after the establishment of the supplementary budget. METI also expects that the subsidies will be delivered around two weeks from the filing date of your request, assuming the request is filed electronically.
METI will release more information, (e.g., the date when METI will start accepting requests and the application period), on the Small and Medium Enterprise Agency website once it is determined.
- SEMA website
- Brochure for Businesses Affected by the Novel Coronavirus Disease (in Japanese) (PDF:1,670KB)
Can I receive subsidies even if I do not file a request immediately?
METI will secure a sufficient time for the application period and sufficient funds so that a wide variety of businesses that need subsidies are able to make use of them.
What types of businesses are eligible for the subsidy program?
Businesses facing a decrease in sales by 50% or more on a year-on-year, monthly basis, due to the effects of the novel coronavirus disease are eligible for the subsidy program.
Excluding large enterprises with over 1 billion yen of capital, METI is scheduled to target mid-ranking enterprises, SMEs, micro enterprises and individual business operators, including freelancers. Moreover, METI is also scheduled to target a wide variety of corporations, such as medical corporations, agricultural corporations, and enterprises such as NPOs and social welfare corporations. METI will release further details of target businesses once they are fixed.
How is the total amount of subsidies that a business can receive calculated? (sales in a certain period of time, etc.)
The total amount of subsidies is: 2 million yen for a corporation and 1 million yen for an individual business operator, etc., in principle, but the amount is not to exceed the figure for the year-on-year loss of sales. The formula for calculating the amount is as follows.
Please refer to Note 2 below.
- Taking into consideration the formula above as a basis, METI will continue to hold discussions on measures tailored to businesses and other entities that were newly established in 2019.
- Applicant businesses are permitted to select one month from January to December 2020 when they faced a decrease in sales by 50% or more on a year-on-year, monthly basis.
How can I file a request for subsidies?To speed up the delivery of subsidies, METI is scheduled to make use of electronic methods for accepting requests. However, METI will also open face-to-face counters to support businesses on the basis of necessity, only for cases that have made a prior registration, in filing applications, e.g., supporting them in inputting necessary information. METI will take measures against the novel coronavirus disease for these counters in advance.
Note: You are not required to obtain a GBizID before filing a request.
Tell me about contact counters.
Please contact the SME Financial and Subsidy Consultation Counter (telephone: 0570-783183).
Note: For details of documents, etc. necessary for filling a request and other information, METI will determine details as soon as possible and publicize them by around the final week of April 2020. We appreciate your patience in this matter.