#Japan #Tokyo #wage increase #Tokyo SMEs #Equipment Support

Support for Equipment Investment for SMEs in Tokyo

The Tokyo Metropolitan Government, in collaboration with the Tokyo Small and Medium Enterprise Promotion Corporation, has launched an initiative aimed at financially assisting small and medium enterprises (SMEs) with the acquisition of essential machinery and software. This program, which began in the fiscal year 2021, was designed to bolster the competitiveness and productivity of SMEs operating within Tokyo by offsetting a portion of the costs associated with new equipment necessary for enhancing product and service quality.

To further facilitate these efforts, especially in light of rising wage requirements, the application period for this support program has been extended from February 2 to February 13. This extension allows more SMEs to participate and benefit from the program that aims to promote growth and wage increases across various industries.

Program Overview

Eligibility Criteria

To qualify for the grant, businesses must meet the following criteria:

• - Have a registered head office or branch in Tokyo, or if an individual proprietor, be conducting business activities within the same region.
• - Have been in operation for at least two years.
• - Develop a specific plan for raising wages.

Target Industries

The assistance is available to all industries without limitation, encouraging broad participation from the diverse business landscape in Tokyo.

Supported Initiatives

The support covers projects categorized under one of the following areas:
1. Competitiveness Enhancement: Enterprises aiming to strengthen their market position through the introduction of new machinery and equipment.
2. DX Promotion: Initiatives focusing on integrating digital technologies like IoT, AI, and robotics into existing business models to create new products or services.
3. Innovation: Projects targeting the resolution of urban challenges while aiming for expansion in domestic and international markets by introducing new business activities.
4. Successor Challenge: Support for businesses facing succession that intend to diversify operations and tackle new management challenges through the acquisition of necessary machinery.
5. Upgrade Promotion: Efforts aimed at enhancing competitiveness and productivity to become a central player in the regional economy by implementing new equipment.

Grant Details

• - Support Rate: The specific rate and maximum limit for grants will be determined based on project evaluations.
• - Eligible Period: Expenses incurred from the date of grant approval for up to one year and six months (from July 1, 2026, to December 31, 2027).
• - Eligible Expenses: Costs related to machinery, equipment, and necessary software acquisitions.
• - Installation Location: Approved installations can occur in Tokyo or the nearby prefectures of Kanagawa, Saitama, Chiba, Gunma, Tochigi, Ibaraki, and Yamanashi. Note that projects outside of Tokyo must have their main office registered in the city.

Upcoming Schedule

• - Application Reservation: From 10 AM on February 2, 2026, to 5 PM on February 13, 2026.

- Apply through the reservation form on the Tokyo SME support portal.

• - Application Acceptance: From 10 AM on January 21, 2026, to 5 PM on February 13, 2026.

- Applications will be accepted via the government-operated electronic application system, J-Grant.
- For more detailed application instructions, please visit the Tokyo Small and Medium Enterprise Promotion Corporation's website: Tokyo Support

Contact Information

For any inquiries regarding the program and applications:

• - General Program Queries: Industrial Labor Bureau, Commerce Department, Startup Support Section, Phone: 03-5000-7782
• - Application Specific Queries: Tokyo Small and Medium Enterprise Promotion Corporation, Equipment Support Section, Phone: 03-3251-7884

This initiative is part of the broader '2050 Tokyo Strategy,' striving to bolster the industrial framework supporting SMEs and promote sustainable growth.