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Covid-19 and loan from city office of Japan

Covid-19 and Loan from Japanese government

In the case you are (or were) salaried worker or self-employee in Japan. However due to covid-19, the amount of your income has decreased. So you hope to receive money temporarily and emergently. Otherwise, you can not pay sustain your daily life.

In that case you may be able to apply for loan from city office. They are named Kinkyu Koguchi Shikin (=urgent small amount loan=緊急小口資金) and Sogo Shien Shikin (=General supporting fund=総合支援資金).

At first you will apply for 緊急小口資金 and borrow 200,000 yen or less. You can use this loan only one time. Once you borrow money by 緊急小口資金, you do not need to repay it within one year. If you borrow money on 8th June, 2021, you need to repya it AFTER 8th June, 2022. So you have enough time to recover your life.

If the 200000 yen is not sufficient for you, you can apply for 総合支援資金.  In the case of single household, you can borrow up to 150,000 yen per month.

In other cases (You and your wife and a child etc.), it is 200,000 yen or less per month.

Your household (Non-single household) can borrow up to 6 months (If you apply for this loan by end of June 2021). So if you are granted, you can borrow 1.2 million yen (200000 yen * 6 months = 1.2 million yen)

You need to repay it after one year from your borrowing date.

If you borrow money on 8th June, 2021, you need to repay it AFTER 8th June, 2022. So you have enough time to recover your life.

You need to repay all amount within ten years.

There is not borrowing interest.

So you can repay it very step by step.

You can make application to city office by paper or need to receive interview (It differs depending on city).

You can not borrow this money to repay other loan. You need to use this money to sustain your living.

You can not use this money to sustain your business. You can use this money to purchase daily food, repayment of rental fee of your residence, Not office space.

If your income has decreased due to a reason other than covid-19, you can not apply for this loan.

You will to submit documents that indicate amount of your income has decreased.
(salary slip, sales ledger etc.)

It will take 3 weeks ~ 2 months until you can receive the money.

You need to submit this subsidy by end of August 2021.
(It may be extended)