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Support for Small and Medium Enterprises in Tokyo

In response to the shifting business landscape due to post-COVID conditions, the Tokyo Metropolitan Government is offering a support initiative tailored for small and medium enterprises (SMEs). This program focuses on encouraging businesses to adapt and strengthen their management foundations through proposed enhancements and developments in existing business practices.

Overview of the Initiative

The initiative provides financial aid to enterprises that demonstrate proactive efforts aimed at either deepening or expanding their current operations. Eligible activities are expected to strengthen the management foundation of the businesses involved. In addition to monetary support, the program will also provide advisory services, assisting businesses in identifying areas for operational improvement.

Deepening Existing Businesses

The first track of support focuses on deepening existing businesses, where SMEs are encouraged to enhance the quality of their current offerings. Some examples of eligible projects include:

• - Investing in advanced equipment and technology to boost competitive edge.
• - Improving the quality of existing products and services.
• - Implementing high-efficiency and energy-saving machinery to increase productivity.

These projects are geared towards improving operational capabilities and ensuring that the businesses remain competitive in a changing market.

Expanding Existing Businesses

The second track, aimed at expanding existing businesses, encourages SMEs to innovate and explore new avenues. This includes:

• - Developing new products or services based on existing knowledge and experience.
• - Adopting new methods of delivering products or services to the market.
• - Exploring additional initiatives that leverage current business insights.

These efforts are intended to create new revenue streams and ensure sustainability in the face of continuous change.

Eligibility for Funding

To qualify for funding, SMEs must meet various criteria, especially those concerning wage increase plans, as outlined:
1. Decrease in revenue when compared to a reporting period in 2023.
2. Reporting losses in the most recent financial period.
3. Anticipating a revenue drop due to impacts from U.S. tariff measures in the upcoming fiscal year.

Funding Rates and Limits

The aid provided can cover:

• - Up to 75% of eligible expenses for the wage increase track (80% for smaller businesses).
• - For the general track, it covers up to 66% of the eligible expenses.

The maximum assistance amount is set at ,000,000 (8 million yen), and the eligible expenses include costs for raw materials, equipment purchases, and outsourced services necessary for the approved project plans.

Advisory Services

In addition to financial support, businesses will have access to advisory assistance to address various management challenges. Advisors can be dispatched up to two times at no cost, providing valuable insights to enhance overall business operations.

Application Process

Applications for this program are required to be submitted electronically through the J-Grants system. Important dates include:

• - Wage Increase Priority Course: Open from February 24, 2026, 9 AM to March 13, 2026, 4 PM.
• - General Course: Open from March 2, 2026, 9 AM to March 13, 2026, 4 PM.

For detailed application instructions, please visit the Tokyo Small and Medium Enterprise Agency's official website.

Contact Information

For inquiries regarding the application process or support, please contact the Tokyo Small and Medium Enterprise Agency
tel: 03-4446-2560 (Weekdays from 9:00 AM to 4:30 PM).

This initiative represents a significant opportunity for SMEs to adapt and thrive in an evolving business environment, ensuring that they can secure their positions in the market amidst challenges.