The fiscal 2020 supplementary budget that was approved on Thursday includes support measures for households and businesses that have been affected by the pandemic.
A 100,000 yen across-the-board subsidy to the public will be made according to the basic resident register data as of April 27. Application forms will be sent from administrative authorities and should be returned with bank accounts and other relevant information to ensure that people receive their payout. This can be completed online as well.
Households receiving child support for their children will also be eligible for a payout of 10,000 yen per child. The government plans to make the payout at the same time as the child support payment scheduled for June. Households with an income greater than the income cap are not eligible for the 10,000 yen payout.
Interest-free small-lot loans extended mainly to low-income earners to cover their living expenses as emergency measures was raised from 100,000 yen to 200,000 yen. Applications for the loans will be accepted at social welfare councils at local governments and regional labor banks.
Rent will be covered for three months, up to a certain amount in principle, by a housing benefit that will be provided to people whose income has decreased because of the loss of a job or equivalent. The housing benefit was previously only provided to those who left their job or had to close their business within two years. Applications will be accepted and consultations will be taking place at counseling and support centers for self-support nationwide.
The Economy, Trade and Industry Ministry began accepting applications for a cash subsidy of up to 2 million yen for small and midsize businesses on Friday, as well as a subsidy of up to 1 million yen for a sole proprietor, at its special site to help them sustain their businesses. The payouts are expected to be given out as early as May 8.
The government's employment adjustment subsidy program, which is aimed at covering a portion of the costs that companies have to pay employees who were asked to take leave from work, was also expanded under the supplementary budget. The subsidies will cover three-fourths of leave allowances by large companies, up from the previous 50%, and up to 100% of the allowances paid by small and midsize companies, up from two-thirds, as long as the employees stay on the company payroll. The requirement to receive the subsidy, stating that employees had to be covered by employment insurance for at least six months, have been eliminated. The subsidy program also covers part-time and newly hired employees.
A new subsidy system was also created to compensate businesses whose employees took a special paid leave because of their children being out of school due to the closures. The program is applied irrespective of the type of business and job as well as whether the employees are full-time or not. The grant period was initially set until March 31 but was extended to June 30, following the declaration of the state of emergency.
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