The Tokyo Metropolitan Government has implemented a program called the “Fundraising Support for Foreign Entrepreneurs Project” to foster a robust entrepreneurial environment for foreign nationals in Tokyo. Here’s a detailed breakdown of the program:
Key Features
1. Target Beneficiaries
- Foreign entrepreneurs who have been operating their business in Japan for less than five years.
- Applicants must have a residence status that does not restrict business activities.
- The business must be incorporated in Tokyo with its headquarters or main office in Tokyo.
- Being certified for the business plan by the Tokyo Metropolitan Government (Office of Startup and International Financial City Strategy).
2. Loan Conditions
| Maximum Loan Amount | Up to 15 million yen (operating funds alone are capped at 7.5 million yen). |
| Repayment Period | Within 10 years (with a grace period of up to 3 years). |
| Interest Rate | Fixed at 2.7% or less. |
| Guarantor: | Typically the corporate representative, although exceptions may apply. |
| Collateral: | No collateral required.(An unsecured loan.) |
3. Application and Certification Process
- Before applying for a loan, entrepreneurs must have their business plan certified by the Tokyo Metropolitan Government.
- The certification process involves the submission and review of a detailed business plan at the Business Development Center Tokyo (Akasaka office).
4. Management Support
- The program provides comprehensive management support, including assistance with loan applications, business plan creation, and communication with financial institutions.
- Support comes from specialized staff with extensive experience in financial institutions and certification as small and medium enterprise consultants.
5. Support Scheme
- Coordination is managed through Tokyo Incubation Co., Ltd., with participating financial institutions including Kiraboshi Bank, Ltd. and Dai-ichi Kangyo Credit Cooperative.
- The initiative is designed to ensure that foreign entrepreneurs receive ongoing support throughout the loan application and repayment process.
Application Deadline
The current phase of the program emphasizes that all loans under this initiative should be executed by the end of March 2024. Entrepreneurs are advised to submit their business plans for certification well before this deadline to allow ample time for processing
The support program has already ended, but we plan to inform you via email newsletters, etc., when a similar service is launched again.
Additional Information
The project is part of Tokyo’s broader strategy to become a global financial city and to support foreign entrepreneurs who can contribute to the local economy. Entrepreneurs interested in leveraging this support should contact the Business Development Center Tokyo (Akasaka office) for more information and assistance with the application process
Reference:
https://www.sangyo-rodo.metro.tokyo.lg.jp/chushou/kinyu/yuushi/gaikoku