Up to 1 million yen! How to write your application to be accepted for the Small Business Sustainability Subsidy?

Since April 2020, we have received an increasing number of inquiries from people who want to create websites using the Small Business Sustainability Subsidy.

Small Business Sustainability Subsidy? Sustainability Benefit? The names are very similar, but we wondered how they differ and whether anyone can apply, so we spoke to Strada Tax Accountants about the Small Business Sustainability Subsidy.

What is the Small Business Sustainability Subsidy?

This is a government subsidy that can be used for new initiatives and developing sales channels.

• Introduction of machinery and equipment
• Website Design
• Flyer production
• Store renovation

It can be used for the following purposes:
The standard subsidy amount is up to 500,000 yen, and a flat-rate subsidy of two-thirds of the eligible expenses will be provided.

Is there a difference between the Small Business Sustainability Subsidy and the Sustainability Grant?

Although both involve sustainability, the systems are different.

The business continuity subsidy is a subsidy that will cover the decrease in sales from the previous year, up to a maximum of 1 million yen for sole proprietors and up to 2 million yen for corporations, if sales in a given month have decreased by more than 50% compared to the same month last year.

As mentioned above, the Small Business Sustainability Subsidy is a government subsidy for the costs of new initiatives and developing sales channels.

Difference between the regular and special COVID-19 funding categories for small business sustainability subsidies

Due to the impact of the COVID-19 pandemic, a special coronavirus response category has been set up for the Small Business Sustainability Subsidy.

For the COVID-19 special budget, the following initiatives to prevent the spread of infection will account for at least one-sixth of expenses.

1. Responding to supply chain disruptions
2. Shifting to non-face-to-face business models
3. Establishing a telework environment

The subsidy rate for the regular type was two-thirds, while the special coronavirus category was

1. Supply chain disruption: 2/3
2. Three-quarters of businesses are shifting to non-face-to-face business models
3. The number of companies that have established a teleworking environment is three-quarters.

For example, if you create a website for the Corona Special Program,
If an initiative is implemented with 600,000 yen, 400,000 yen will be paid under the regular scheme and 450,000 yen under the special COVID-19 scheme.

If the project was carried out for 1.2 million yen, including the production of flyers, etc.,
The regular grant will pay 500,000 yen, while the special COVID-19 grant will pay 900,000 yen.

Can anyone apply for the Small Business Sustainability Subsidy?

As the name of the subsidy suggests, it is aimed at "small businesses."

A small business is a company with a small number of employees or a sole proprietorship. Many newly established companies and sole proprietorships have few employees, so they are eligible for this subsidy.

Items eligible for the Small Business Sustainability Subsidy

The subsidy is available to:

• Machinery and equipment expenses
• Public relations expenses
• Exhibition participation fee
• Travel expenses
• development cost
• Material purchase costs
• Miscellaneous service fees
• Rental fee
• Expert Honoraria
• Expert travel expenses
• Facility disposal fee
• Commission expenses
• Outsourcing cost

How to apply for the Small Business Sustainability Subsidy

After receiving support from the Chamber of Commerce or Industry, submit the application.

Tax accountants with extensive experience in preparing application forms are skilled at constructing logic based on numbers.
Receiving support with your application from such a tax accountant can reduce the chances of your application being rejected and help you discover strengths in your company that you may not have been aware of.

When should I start preparing to apply for the Small Business Sustainability Subsidy?

The deadline for applications for the 4th special COVID-19 quota is October 2, 2020 (the 3rd regular quota deadline is also on the same day).

If your application passes the screening process, you will be notified of the results within 1-2 months of the application deadline.

The subsidy period will then run until the end of July 2021, and subsidies will be paid out approximately one month after performance reports are submitted.

Documents required to apply for the Small Business Sustainability Subsidy

In addition to the application form, corporations will need a balance sheet and profit and loss statement (not required if the company has not yet completed its fiscal year), and sole proprietors will need to submit a tax return.

Tips on how to write a business plan and subsidy business plan to be adopted

In order for an application to be accepted, it must of course meet the eligibility requirements for eligible expenses and recipients, and the content of the application (business plan) will determine whether or not the application will be accepted.

Your application should be clear and concise and can include tables and photographs.

Explain the purpose of the subsidy project and why you need the subsidy, along with an overview of your company and its current situation, and use data, etc. to construct a logic that will convey the information objectively to the reader.

Official website of the Small Business Sustainability Subsidy

• Small Business Sustainability Subsidy (General Type)
• Small Business Sustainability Subsidy (Special Coronavirus Category)