The Japanese Government’s Cash Grant for Sustaining Business
The following is a translation of the official government announcement regarding the business cash grant program (Jizoku-ka-kyuufu-kin) that can be found here: https://www.meti.go.jp/covid-19/pdf/kyufukin.pdf
Please note that there might be changes to the information below. A final version is expected to be announced by the end of April 2020.
Information for the Cash Grant Program for Sustaining Businesses.
What are the cash grants for sustaining businesses?
We (the Japanese Government) are providing cash grants to business owners who have been severely affected by the coronavirus situation in order to help them sustain and restart their businesses.
Cash Grant Amount
Corporate entities: two million yen.
Sole proprietors: one million yen.
Note : The grant amount will be limited to an amount that covers a demonstrated loss of sales from the previous year.
Calculation of Sales Loss
Previous year’s gross sales (business income) – (gross sales of month in current year in which sales dropped by 50% x 12 months)
Note : The above formula is just a base. We are also taking into consideration situations where business owners have just recently started their business.
1) Business’s whose sales have dropped by more than 50% in the current year due to the coronavirus.
2) Small, medium & mid-sized enterprises, freelancers, sole proprietors are eligible. Company providing medical and agricultural, and social welfare services as well as NPOs can apply.
3) Large enterprises (over one billion yen in capital) are excluded.
SME Finance Consultation Desk
0570-783183 (Weekdays・Holidays 9:00 to 17:00)
Frequently Asked Questions (FAQ)
Q1: For which period can we compare the 50 percent decrease in sales?
Answer: Between January 2020 and December 2020, you can pick any month which shows a 50 percent or larger decrease over the same month from the previous year.
Q2: When can we apply?
Answer: The application counters should open approximately one week after the correction budgets have been finalized.
For electronic applications, it is expected that funds will be disbursed within two weeks of receiving the application.
Note: Funds will be transferred into the applicant’s bank account.
Q3: What information is required?
Please provide the following:
- Bank account number
- Copy of bank
- Corporate entities must provide the company name.
- Sole proprietors must provide the individual’s name.
- Corporate entities must provide their corporate number (houjin-bango).
- Copy of 2019 tax return.
- Documents that prove a drop in revenue for the stated month (general ledger, accounting report, etc.).
Note : Additional requirements (additional documents etc.) may be announced in the future.
Q4: What is the application process?
Answer: You can apply online. If necessary, you can make a physical appointment with us (as a health safety measure, we only accept those with prior reservations).
Note : A G Biz ID is not required for the application.