Sanpo-yoshi Communication

President's Column] Business Restructuring Subsidies Drawing Attention

There is a lot of talk about "business restructuring grants." This is because it is expected to be a large-scale subsidy. It is included in the third supplementary budget for FY2020, has already been approved by the Cabinet, and is expected to be implemented.

https://www.meti.go.jp/main/yosan/yosan_fy2020/hosei/pdf/hosei3_yosan_pr.pdf

The program will support companies and organizations that meet all of the following requirements: expansion into new fields, business, industry transformation, business restructuring, or expansion of scale through these initiatives.

1. small and medium-sized enterprises, etc. whose total sales for any three months in the last six months prior to the application have decreased by 10% or more compared to the total sales for the same three months prior to Corona.

2. small and medium-sized enterprises, etc. that formulate business plans with certified support organizations and financial institutions and work together to restructure their businesses.

Achieve an average annual increase of at least 3.01 TP3T (or 5.0% in some cases) in value added or an average annual increase of at least 3.01 TP3T (or 5.0% in some cases) in value added per employee within 3 to 5 years after the completion of the subsidized project.

and there are. Unfortunately, companies that have not lost sales are not eligible.

The four grant frameworks are
= For small and medium enterprises = For small and medium enterprises
1) Normal quota: 1 million to 60 million yen (subsidy rate: 2/3)
(2) Graduation Quota: Limited to 400 companies, special quota for businesses that increase capital or employees within the business plan period through either (1) organizational restructuring, (2) new capital investment, or (3) global expansion, and grow from a small to medium-sized company.

= For medium-sized enterprises = For small and medium-sized enterprises
(iii) Normal quota: Subsidy amount 1 million to 80 million yen (subsidy rate 1/2, over 40 million yen: 1/3)
(4) Global V-shaped recovery framework: Subsidy amount of over 80 million yen to 100 million yen (1/2 subsidy rate). Eligibility: Medium-sized companies whose total sales in any three months in the preceding six months have decreased by 15% or more compared to the total sales in the same three months before Corona / Achieve an annual increase of 5.01 TP3T or more in value added or value added per employee in three to five years after the end of the subsidized project / Achieve global expansion The project must be a global business.

There is a

Applications include retailers converting to online sales and subscriptions, and catering to restaurant delivery and take-out demand. A manufacturing company embarking on manufacturing for a different industry than its current primary customers.

Subsidies
Building expenses, building renovation expenses, equipment expenses, system purchase expenses, subcontracting expenses (processing, design, etc.), training expenses (education and training expenses, etc.), technology introduction expenses (expenses related to the introduction of intellectual property rights), advertising and sales promotion expenses (preparation of advertisements, media coverage, exhibition participation, etc.) are included in expenses eligible for subsidy.

The subsidy is likely to cover a wide range of expenses, excluding personnel and travel costs, etc.

We are sure that this will be a very popular grant along with the open call for applications. We are sure that you will need the support of an accredited support organization.

https://www.chusho.meti.go.jp/keiei/kakushin/nintei/kikan.htm

The following was included as a note of caution

*Applications will be accepted via jGrants (electronic application system), and it may take 2-3 weeks to receive a GBIZ ID Prime account, so we recommend that you obtain an ID in advance if you are considering applying for a grant.

It is recommended that you obtain this information as soon as possible. The application period has not yet been determined, but it is expected to be open by the end of February. We will post further details in this newsletter.

Return to list