New Business Expansion Subsidy (1st Round) Deadline: Thursday, July 10, R7
A new subsidy, said to be the successor to the Business Restructuring Subsidy,
is starting.
The official name is “Small and Medium Enterprise New Business Expansion Promotion Subsidy”
I don't think I'll be able to remember that, so I abbreviated the title of this article appropriately ^^)
Actually, come to think of it, the public offering guidelines also use the abbreviation “New Business Expansion Subsidy”.
I guess that makes it an official abbreviation (lol).
I will briefly summarize the publicly available information.
Small and Medium Enterprise New Business Expansion Promotion Subsidy (1st Round)
As basic information, let's first check the public offering guidelines!
https://shinjigyou-shinshutsu.smrj.go.jp/docs/shinjigyou_koubo.pdf
It is currently “Version 1.0,” but since there is a possibility that it will be updated from time to time,
I recommend that those preparing an application check the official website frequently.
Schedule
Public offering start: Tuesday, April 22, Reiwa 7
Application acceptance: Around June, Reiwa 7 (scheduled)
Application deadline: 18:00, Thursday, July 10, Reiwa 7
Announcement of subsidy delivery candidates: Around October, Reiwa 7 (scheduled)
The application deadline for the 1st round is Thursday, 7/10.
If you start preparing immediately, you have more than two months!
However,
there is still information that has not been released, such as the format for the business plan,
so you need to continue to carefully collect information and prepare.
Purpose of this subsidy
The purpose is to support small and medium-sized enterprises, etc., in their proactive challenges in businesses different from their existing onesby entering
new markets and high-value-added businesses,thereby helping them achieve
business scale expansion and value-added improvementthrough productivity improvementand leading to
wage increases.
For each subsidy program, the purpose of the project is defined.
It is written near the beginning of the public offering guidelines.
If you skip reading this, you will end up with the wrong direction and it will be painful,
so make sure to read the words and context thoroughly~!
New Market/High Value-Added Business is a key term and has its own unique definition, so be careful!
Expansion of business scale and productivity improvement, being explicitly stated is a bit surprising
You need to be conscious of this in your business plan
Wage increases are a theme in many subsidies. Be careful as there are also penalties.
Subsidy Amount
The amount is relatively high, but
a 1/2 subsidy rate is fairly standard.
If you are planning to carry out the project even without the subsidy, why not consider it?
Eligible Expenses
These are mostly the same as the Business Restructuring Subsidy.
Machinery and system construction costs or building costs are the main eligible expenses, and
you must include one of these two (mandatory expenses).
Machinery and system construction costs
Building costs (construction/renovation )
Transportation costs
Technology introduction costs (including intellectual property, technology license fees, etc.)
Intellectual property-related expenses (such as patent attorney fees for related IP applications)
Outsourcing costs
Expert expenses (performance reporting is a hassle lol)
Cloud service usage fees
Advertising and sales promotion expenses (PR websites are also said to be eligible, but...)
A fairly wide range of expenses is permitted, but
if you apply without careful consideration, you might have trouble during the performance reporting stage.
Let's apply while thinking about the final outcome.
Are building costs for new construction also OK!?
Building costs are defined as "expenses required for construction/renovation".
Since new construction was completely prohibited in the latter stages of the Business Restructuring Subsidy,
will it be revived again? Will there be various restrictions? This is something to watch closely!
For amounts of 500,000 yen or more, quotes from three parties are required.
If the total quoted amount is 500,000 yen (excluding tax) or more, it is necessary to obtain
quotes from three or more parties under the same conditions.
Is "same conditions" equivalent to the Business Restructuring Subsidy?
This requires caution.
New Business Expansion Guidelines Handbook
https://shinjigyou-shinshutsu.smrj.go.jp/docs/shinjigyou_shishin_tebiki.pdf
There is a separate document for this, so be sure to check it!
1. Novelty requirements for products, etc.
2. Novelty requirements for the market
3. New business sales requirements
Regarding the 3. New business sales requirements,
the sales of new products, etc., must be10% or more of the total sales at the time of application.
It's not sales 3 to 5 years later, but
10% or more of the total sales at the time of application
, isn't it?
10% of sales (or 15% of total value-added) is the minimum requirement for application.
By formulating a plan where sales of new products, etc., account for a larger proportion,
you may be able to receive a higher evaluation during the screening process.
Let's set higher goals instead of just barely meeting the minimum line!
What is a New Market/High Value-Added Business?
https://shinjigyou-shinshutsu.smrj.go.jp/docs/shinjigyou_shinsijyo_koufukakachi.pdf
This is a newly defined term and concept for this round.
Be careful and check it thoroughly!
Must meet either "New Marketability" or "High Value-Added Nature"
It looks like a complicated explanation, but in short,
it seems you just need to meet either "New Marketability" or "High Value-Added Nature".
What is New Marketability?
When categorizing genres or fields, elements such as the product's "performance," "size," "material," "price range," "regionality," "business type," "customer base," and "effect" must be excluded.
The "genre/field" categorized here must have low general prevalence or awareness in society. Additionally, you must provide objective data, statistics, etc., to support this.
【Review Image】
・Whether the general prevalence of "medical device parts" in society is low.
・Whether the general awareness of "yakiniku restaurants" in society is low.
I think there are few people who can immediately understand the meaning of this sentence.
I was also left thinking, "Hmm?"
Let's understand it thoroughly by comparing it with examples ^^)/
What on earth is objective data or statistics
that prove low general prevalence or awareness?
I think everyone feels that same sense of uncertainty.
It's definitely something to consult an expert about lol
What is High Value-Added Nature?
⚫ Have the general added value and market prices in the genre/field of the new product, etc., been researched and analyzed?
⚫ Compared to the general added value and market prices in the genre/field of the new product, etc., does the new product, etc., that your company manufactures, etc., aim for a high level of added value and higher pricing? Has the value/strength that serves as the source of the high added value and higher pricing been analyzed, and is it reasonable?
It is not entirely clear whether "high added value" and "higher pricing" are an AND condition or an OR condition.
It seems a bit more analysis and consideration are needed.
Regarding this area, interpretation of requirements, countermeasures, and expression in the business plan, etc.
require multifaceted consideration.
Is the business plan entered into the electronic application system!?
The content of the business plan must be entered into the electronic application system.
Since there is no mention of page limits in PDF format,
I have a feeling it will be significantly different from the conventional Business Restructuring Subsidy format.
By using the "Business Plan Template" (to be released at a later date), you can prepare your application content, which will allow for a smooth process once the electronic application system opens (this is intended solely for application preparation, and separate entry will be required when performing the actual electronic application).
Since it says that,
is it a text-entry format similar to the Manufacturing Subsidy??
If the text and diagrams are separated,
I think it will be very difficult for both the applicant and the reviewer...
The atmosphere is subtle; be careful!!
Content to be included in the business plan
(1) Details of existing business
(2) Specific details of the subsidized business initiatives
(3) Necessity of the collaborative body <Only for collaborative body applications>
(4) Current situation analysis (SWOT analysis, necessity of new business, etc.)
(5) New marketability and high value-added nature of the new business ★
(6) Promise of the new business (future potential, market entry possibility, competitor analysis) ★
(7) Feasibility of the business (challenges, schedule, business implementation structure) ★
(8) Necessity of public subsidy (social significance?) ★
(9) Policy aspects (While labeled as [Optional], are they actually bonus items?) ★
(10) Planned expenses subject to subsidy (for machinery and equipment with a unit price of 5 million yen or more, state the name)
(11) Revenue plan (specific initiatives to exceed numerical requirements, feasibility, and grounds)
★ indicates items emphasized in the review criteria
There are 11 items, and the content is standard, but
if the input fields are finely divided and there are character limits, it will be very difficult to express everything.
You can attach photos, charts, etc., for each item.
In particular, for "(2) Specific details of the subsidized business initiatives," please use photos, charts, etc., to clearly explain the differences between your existing business and the new business.
Since it says that, does it mean that text and charts can be entered simultaneously in the system?
Maybe? It would be nice if it had a UI like note (lol).
"New business sales requirements"
"Value-added amount requirements"
"Wage increase requirements"
"Workplace minimum wage level requirements"
Basic requirements such as these must be stated as a prerequisite.
Other points to note
Businesses already selected for the Business Restructuring Subsidy can also apply
Regarding the concern about the relationship with the Business Restructuring Subsidy,
it is not a blanket 'no'
If you have received any of the following subsidies in the past, points will be deducted if the commercialization stage in the most recent commercialization status report, etc., for the subsidized project is 3 or lower.
・New Business Expansion Subsidy
・Business Restructuring Subsidy
・Manufacturing Subsidy
It is incomprehensible that the "New Business Expansion Subsidy" is included in this list, but
well, I won't worry about that lol
What is the commercialization stage in the commercialization status report, etc.?
From the [Business Restructuring Subsidy] Commercialization Status Report Manual (Reference)
Stage 1: Conducting advertising, etc., related to product sales or service provision.
Stage 2: Orders (contracts) have been secured.
Stage 3: At least one product has been sold or one service has been provided.
Stage 4: There is a track record of continuous sales/provision, but no profit is being made.
Stage 5: There is a track record of continuous sales/provision and profit is being made.
※ "Continuous sales" means
"Sales for the project have been recorded every fiscal year since the year the first sales were recorded. However, if sales were only recorded in the most recent fiscal year, the product/service must be sold to multiple customers."
Since Stage 3 or lower results in a point deduction,
Stage 4 or higher is okay
In short,
You have started selling the new product/service covered by the subsidy
You are able to record sales continuously (on an annual basis)
You are also recording sales in the commercialization status report
If you meet these conditions, you can apply without any point deductions
Only one application
The same business operator is limited to one application per public offering
Similar to the Business Restructuring Subsidy, out of the four planned public offerings over two years,
you can only apply once
It is possible to describe multiple project contents in the business plan and apply
Well, I think it's difficult, but it is possible to write multiple business plans within one plan and
record the expenses for each
For example, starting a ramen shop and a yakiniku restaurant, etc. lol
If the businesses have commonalities at a high level and
have synergy effects, it might be a viable option
General Employer Action Plan is now a mandatory requirement!
⚫ To apply for this subsidy,
it is necessary to formulate and publish a General Employer Action Plan
based on the "Act on Advancement of Measures to Support Raising Next-Generation Children (Act No. 120 of 2003)". If you have not formulated and published a General Employer Action Plan,
please prepare and complete the procedures in advance.
⚫ The
publication procedure for the General Employer Action Plan takes about 1 to 2 weeks. No extensions to the application deadline due to delays in the publication procedure for the General Employer Action Plan will be granted under any circumstances, so please prepare with plenty of time to spare.
It appears to be a system under the jurisdiction of the Ministry of Health, Labour and Welfare.
It seems to be based on themes such as
balancing work, life, and child-rearing
and the empowerment of women.
A solid response is required.
Submit the grant application within 2 months of the selection announcement!
From the perspective of ensuring the systematic progress of the subsidized project, in principle, the grant application must be submitted
no later than two months after the selection announcement date (the date the subsidy grant candidates are determined).
If the application is not submitted by the deadline, the selection will be revoked.
This is the same regulation as the Manufacturing Subsidy.
Two months from the selection announcement passes surprisingly quickly.
It feels impossible unless you prepare the estimates before the selection announcement.
Subsidized Project Implementation Period
Within 14 months from the grant decision date
(however, no later than 16 months from the selection announcement date for subsidy grant candidates),
all procedures including contracting (ordering), delivery, inspection, payment, and submission of the subsidized project performance report must be completed.
This is set for a longer period than the Business Restructuring Subsidy or the Manufacturing Subsidy.
On-site Inspection
This is an inspection where inspectors are dispatched to the site after the performance report is submitted.
Although it states it is conducted in principle, there are 1,500 planned selections per round.
Is it even possible to conduct them??
In order to confirm that the subsidized project is being implemented appropriately,
the secretariat will conduct an on-site inspection in principle.
During the on-site inspection, you must follow the instructions of the inspectors and cooperate with the inspection.
If you refuse to cooperate without a reason deemed valid by the secretariat, the grant decision will be revoked.
If it is not possible to confirm acquired assets or accounting books when determining the subsidy amount,
the amount related to said assets will not be eligible for the subsidy.
Oral Examination
The oral examination will be conducted as necessary for businesses that meet certain evaluation criteria.
An online interview-style examination
It is scheduled for approximately 15 minutes per business.
While there are regulations in place, it is unclear whether it will actually be implemented???
Online Information Session for the Program (Wednesday, April 30, 14:00–15:00)
If you are interested in this subsidy, I think it would be a good idea to attend the official information session.
However, you should not expect much more than what is already available in the published materials.
They might just read the published materials aloud, lol.
It will not affect the examination, so I think it is fine for only those who have time to attend.
SME New Business Expansion Program Overview Information Session
Date and Time: Wednesday, April 30, 2025, 14:00 – 15:00
Method: Zoom (Webinar format)
Overview: In this session, we plan to explain the program overview and eligibility requirements based on the "Application Guidelines" for this subsidy.
Notes: Please read the application guidelines and "Frequently Asked Questions" posted on the website before participating.
* This session requires advance registration and is limited to the first 5,000 participants.
* A recording will be posted on the website at a later date.
* Participation in the information session will not affect the examination or selection process.
I was curious about it in the middle of the night, so I did a quick check.
More details will likely be released, and
it is necessary to analyze the essence of the requirements and consider countermeasures.
Subsidy requirements are becoming more complex every year.
Start your preparations early!
This article was written by,
Future Realization Partner for Increasing Revenue Pillars: Shigeki Kawahara
https://mousoubiz.com/
https://twitter.com/mousoubiz
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