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Tokyo's Enhanced Investment Grant: Supporting SME Growth

Starting August 22, the Tokyo Metropolitan Small and Medium Enterprise Support Center (led by Chairman Mitsuru Nakanishi) has announced the opening of applications for the 10th round of the “Support for Equipment Investment to Promote Dynamic Business Operations” grant. This initiative aims to bolster the long-term growth of SMEs in Tokyo, thus strengthening the industrial capabilities and sustainable development of the local economy.

What Is the Equipment Investment Support Project?

This support program is designed for small and medium-sized enterprises (SMEs) in Tokyo that seek to enhance their competitiveness through improved product quality and increased production capacity. It partially subsidizes the costs associated with the acquisition of necessary machinery and equipment to foster productivity. The ultimate goal is ensuring that SMEs align their growth strategies with Tokyo's industrial growth.

Key Changes from Last Year

1. New Maximum Grant Amount: A new category named “Upgrade Promotion” has been introduced, allowing for grants up to 200 million yen for companies considering large-scale investments. Other thresholds range from the minimum grant of 1 million yen to a maximum of 100 million yen to support diverse business scales.

2. Introduction of 'Work Style Reform' Division: In response to the Work Style Reform Act effective from April 2024, a new division has been launched to support measures countering labor shortages imposed by overtime regulations.

3. Increased Grant Rate: Particularly in the newly introduced 'Work Style Reform' division, the grant proportion has been expanded to as much as 4/5.

Eligible Grant Projects

To qualify, projects must fall into one of the following categories:

• - Competitiveness Enhancement: Introduce machinery and equipment necessary for businesses aiming to enhance competitiveness while adapting to the Work Style Reform.
• - DX Promotion: Utilize digital technologies like IoT, AI, and robotics to develop new products or services.
• - Innovation Projects: Projects that address urban challenges and expect to expand markets in relevant industrial sectors, thus fostering innovation.
• - Successor Challenges: Initiate diversification or new management strategies using equipment essential for succession.
• - Upgrade Promotion: Invest in machinery necessary for strengthening competitiveness and enhancing productivity.

Grant Rates and Limits

• - Maximum limits and conditions for differentiated categories apply, especially for SMEs seeking assistance without specific conditions.
• - Zero-emission and energy-efficient initiatives may receive further rate enhancements.
• - Certain wage improvement conditions will also enable higher grant rates, fostering a competitive landscape amongst participants.

Overview of Eligible Beneficiaries

Applicants must operate within Tokyo and have been in business for at least two years as of September 1, 2024. All industry sectors are eligible, and the grant period extends from the approval date for 1 year and 6 months.

Testimonials from Beneficiary Companies

Many SMEs have reported substantial benefits from prior grants, with noteworthy improvements in operational efficiency:

• - Enhanced Robotics: “The introduction of robots alleviated our personnel from repetitive tasks, allowing for skills development.”
• - Software Implementation: “Our operational visibility and data aggregation improved instantly, leading to over 20% enhancements in productivity.”
• - Environmental Impact: “New installations have reduced our operational burdens while aligning with SDGs objectives for fuel efficiency.”

Application Schedule and Process

It’s important to pre-register for the application process. The grant applications can be submitted electronically via the government's “J-Grant” system. The time leading up to the deadline can be crowded, necessitating early submission to avoid issues.

For details about the application process and to reserve a spot, please visit the Support Center's website. The next application period runs from August 22 to September 24.

Contact Us

For further questions or clarifications, reach out to the Equipment Support Division at the Tokyo Metropolitan Small and Medium Enterprise Support Center at 03-3251-7884.