#Japan #Tokyo #Emergency Support #Tokyo SMEs #Material Costs

Emergency Support for SMEs Battling Rising Material Prices in Tokyo

The Small and Medium Enterprise Agency of Tokyo and the Tokyo Metropolitan Government have announced that they will start accepting applications for the second and third rounds of emergency support funding. This initiative is specifically aimed at small and medium-sized enterprises that are facing challenges due to surges in raw material prices caused by ongoing tensions in the Middle East.

Overview of Financial Aid

The program, titled “Emergency Measures for Stabilizing Management Foundations Due to Rising Material Prices from Middle Eastern Situations,” will cater to the following categories of businesses in Tokyo:

• - Those whose operating profit margins have decreased compared to the previous fiscal year.
• - Businesses that expect a decline in their operating profit margins for the upcoming fiscal year.
• - Companies that reported operating losses in the most recent fiscal period.

What the Support Covers

The financial aid will cover a variety of expenses including:

• - Raw material and auxiliary material costs
• - Equipment, tool, and machinery expenses
• - Costs related to the introduction of new systems
• - Expenses for improving machinery and systems
• - Outsourcing and commissioning fees
• - Costs for introducing new equipment
• - Guidance fees from experts
• - Marketing costs for expanding sales channels
• - Other related expenses

The grant range allows for reimbursement of up to 80% of eligible expenses, with a maximum cap of 20 million yen available for each qualifying application. The aid will be in effect for one year, starting from the date of grant approval.

Examples of Implementable Projects

The funding can be utilized for projects such as:

• - Implementing equipment that reduces paint usage on construction sites.
• - Setting up inspection devices that help identify defective products early, thereby improving material yield.
• - Participating in trade shows to market new products that utilize alternative materials.
• - Developing an order management system to minimize inventory losses in ink supplies.

Application Schedule

• - Second Round: Submissions are open from September 1 (Tuesday) to September 30 (Wednesday).
• - Third Round: Submissions will be accepted between November 2 (Monday) and November 30 (Monday).

Assessment Criteria

Applications will undergo both document reviews and interviews for screening.
However, applications requesting funding below 1 million yen will only require a document review. In certain cases, experts may conduct preliminary site visits to assess applications.

How to Apply

For more information about the application guidelines and required documentation, please visit the official Tokyo Small and Medium Enterprise Agency website: Tokyo Kosha.

Contact Information

For inquiries regarding the funding program overall:

• - Industrial and Labor Bureau, Commercial Division, Management Support Section

Phone: 03-5320-4784

For questions specifically about the management foundation stabilization project:

• - Middle East Situation-related Price Increase Support Emergency Measures Project Office

Phone: 03-4376-5728
Email: [email protected]

In a time of escalating global challenges, this initiative by the Tokyo Metropolitan Government represents a crucial opportunity for businesses seeking to stabilize their operations amidst economic fluctuations. Small and medium enterprises are vital to Tokyo’s economy, and this support aims to help them thrive even in difficult circumstances.