METI’s Support Measures for Companies Concerning the Impacts of the Novel Coronavirus Disease

 (As of March 24, 2020)

METI has been taking the following measures for mitigating the impacts on companies of the novel coronavirus disease (COVID-19) and for supporting such companies:

• Online brochure on METI’s support measures
• Supporting companies in financing (loans and guarantees)
• Conducting a subsidy project for companies taking countermeasures against the novel coronavirus disease
• Opening consultation counters for SMEs and small enterprises
• Releasing information on the current situations of Japanese companies developing business overseas, information on overseas countries, and consultation counters (JETRO)
• Deregulatory measures in import and export procedures as a response to the novel coronavirus disease
• Requesting that for main contracting companies take appropriate care in trading with their subcontractors
• Requesting that ordering companies take appropriate care in trading with individual business operators and freelancers affected by the novel coronavirus disease
• Requesting that related associations take care in recruiting activities and for students given an informal promise of employment based on government responses to novel coronavirus disease
• Website for online class services provided by Ed Tech companies for students during school closure
• The Project for #Navigation of Information on Private Support Services
• Technical support provided by ICT companies to organizations which intend to introduce telework options

Online brochure on METI’s support measures

METI compiled its measures for supporting businesses affected by the novel coronavirus disease into a brochure.

• Brochure for businesses affected by the novel coronavirus disease (in Japanese)(PDF:1,105KB)

Supporting companies in financing (loans and guarantees)

METI will provide financing support for businesses affected by the expansion of the novel coronavirus disease.

No.4 and No.5 Safety Nets for Financing Guarantee

No. 4: If an SME is runs a business in a designated area in which a wide variety of industries are affected by the disease and it faces a decline in sales of 20% or more from the previous year, it is eligible to make use of a financing guarantee for the full loan amount under a framework of up to 280 million yen, which is separate from a general financing guarantee.

• On March 2 (Mon.), METI designated all prefectures across Japan as target areas subject to the No.4 Safety Net for Financing Guarantee (February 28).

No.5: If an SME is a business in an industry particularly severely affected by the disease and it faces a decline in sales of 5% or more from the previous year, it is eligible to make use of a financing guarantee of 80% of the loan amount under a framework of up to 280 million yen, which is separate from a general financing guarantee.

• On March 3 (Tue.), METI decided to designate an additional 40 industries as eligible for the financing program, including accommodations and hotels, eateries, restaurants and fitness centers (March 3).
• On March 11 (Wed.), METI decided to designate an additional 316 industries as eligible for the financing program, such as dairy product manufacturers and hair-dressing and beauty salons (March 11).

Guarantee Related to Emergencies: If an SME in any industry across Japan* faces a decline in sales of 15% or more from the previous year, it is eligible to make use of a financing guarantee of the full loan amount under a framework of up to 280 million yen, which is separate from a general financing guarantee.

*Note: These industries must fall under the industries subject to the Credit Guarantee System.

• METI decided to implement the Guarantee Related to Emergencies in addition to the Safety Nets for Financing Guarantee (March 11).

Safety Nets Loan Programs

• The Japan Finance Corporation will open a special consultation counter for businesses affected by the novel coronavirus disease and will relax the requirements for safety nets loans.

Conducting a subsidy project for companies taking countermeasures against the novel coronavirus disease

Subsidy Project for Supporting Businesses in Introducing Facilities for Producing Face Masks

This project aims to support businesses in introducing facilities for producing face masks in response to the government’s request to increase production of face masks in order to resolve the shortage of such masks as necessary basic goods for addressing the novel coronavirus disease.

Project for Facilitating Productivity Revolutions

This project aims to support businesses, by priority, in tackling efforts for: business investment; cultivation of sales channels; and enhancement of efficiency through introducing IT so that the businesses are able to overcome damaged supply chains and secure business continuity in the future.

Subsidies for monodzukuri

This measure aims to provide SMEs and small enterprises with subsidies for business-related equipment investment expenditures.
Subsidized amount per applicant: 1 million to 10 million yen; Subsidy rates: 1/2 for SMEs, 2/3 for small enterprises

Subsidies for sustainability

This measure aims to support small enterprises in advancing efforts for cultivating sales channels and improving productivity.
Subsidized amount per applicant: Up to 500,000 yen; Subsidy rates: 2/3

Subsidies for introduction of IT

This measure aims to support companies in introducing IT into their business as tools for contributing to enhancing value added, e.g., enhancing efficiency of back-office operations.
Subsidized amount per applicant: 300,000 to 4.50 million yen; Subsidy rates: 1/2

Opening consultation counters for SMEs and small enterprises

METI opened business consultation counters targeting SMEs and small enterprises that are or may be affected by the recent epidemic of the novel coronavirus disease and will address requests for consultations relating to their business operations (January 29, 2020).

The Japan Finance Corporation; the Shoko Chukin Bank, Ltd.; Credit Guarantee Corporations; Chambers of Commerce and Industry; the Federation of Societies of Commerce and Industry; the Federation of Small Business Associations; and Yorozu Support Centers; as well as: the National Federation of Shopping Center Promotion Associations; the Organization for Small & Medium Enterprises and Regional Innovation, JAPAN; the Regional Bureaus of Economy, Trade and Industry and other entities

Releasing information on the current situations of Japanese companies developing business overseas, information on overseas countries, and consultation counters (JETRO)

JETRO provides the following services: “Province- or City-based Support Measures for Companies Intending to Resume their Businesses in China,” which is a collection of measures provided by JETRO offices worldwide; Spotlight Newsletters; and a consultation counter for SMEs affected by the novel coronavirus disease.

• Impacts caused by the expansion of the novel coronavirus disease (JETRO website) 

Deregulatory measures in import and export procedures as a response to the novel coronavirus disease

METI expects delays and other disruptions in imports and exports as a result of the novel coronavirus epidemic. As responses to such delays, METI compiled the following notable items related to trade controls, including new, special treatments, and opened consultation counters concerning these responses.

• Deregulatory Measures in Import and Export Procedures as a Response to the Coronavirus Disease 2019 (COVID-19)

Requesting that main contracting companies take appropriate care in trading with their subcontractors

Using written documents, METI will request, through about 1,100 related industrial associations, that main subcontracting companies to take appropriate care in trading with their SME subcontractors affected by the novel coronavirus disease, e.g., to not force their subcontractors to accept improper trade conditions.

• METI to Request Main Subcontracting Companies to Take Appropriate Care in Trading with their Subcontractors Affected by Novel Coronavirus (February 14)
• METI to Request Main Subcontracting Companies Take Further Appropriate Care in Trading with their Subcontractors Affected by Novel Coronavirus Disease (March 10)

Requesting that ordering companies take appropriate care in trading with individual business operators and freelancers affected by the novel coronavirus disease

The Ministry of Economy, Trade and Industry (METI), in joint name with the Minister of Health, Labour and Welfare and the Chairman of the Japan Fair Trade Commission, will request, through related associations, that ordering companies take appropriate care in trading with individual business operators and freelancers affected by the novel coronavirus disease.

• METI to Request that Ordering Companies Take Appropriate Care in Trading with Individual Business Operators and Freelancers Affected by Novel Coronavirus Disease (March 10)

Requesting that related associations take care in recruiting activities and for students given an informal promise of employment based on government responses to novel coronavirus disease

The Ministry of Economy, Trade and Industry (METI) will request, in joint name with the Cabinet Secretariat, the Ministry of Education, Culture, Sports, Science and Technology (MEXT) and the Ministry of Health, Labour and Welfare (MHLW), related associations to consider the government’s responses to the novel coronavirus disease and, based on this consideration, to take special care in convening recruiting activities targeting students who will graduate from schools or complete academic courses at the end of FY2020 as well as such care for students given informal promises of employment who will graduate from schools or complete academic courses at the end of FY2019.

• METI to Request Related Associations to Take Care in Recruiting Activities and for students given an Informal Promise of Employment Based on Government Responses to Novel Coronavirus Disease (March 13)

Website for online class services provided by Ed Tech companies for students during school closures

Aiming to create opportunities for school children and students to learn at home in light of the closure of all schools, EdTech companies have been advancing initiatives for providing such students with learning tools free of charge and other services. The portal website of the “Future Classroom” Program presents a list of such companies.

Publishing Information on Free-of-Charge and discounted Support Services Provided by Private Companies with Standardized Open Data - “The Project for #Navigation of Information on Private Support Services” -

The IT Strategic Headquarters of the Cabinet Secretariat, the Ministry of Internal Affairs and Communications (MIC) and the Ministry of Economy, Trade and Industry (METI), in cooperation with industrial players and a Civic Tech association, will jointly start a new project titled “ the Project for #Navigation of Information on Private Support Services.” The project aims to compile information on support services provided by private companies as responses to the novel coronavirus disease into a standard format and publish the data.

Technical support provided by ICT companies to organizations which intend to introduce telework options

ICT companies have been advancing the provision of teleworking tools and other services to companies and other entities tackling the introduction of teleworking to prevent the spread of the novel coronavirus disease in the workplace. The Japan Telework Association explains how companies are providing such support services on its website.