The Japanese Government adopted a new ¥1 trillion emergency package on March 10th to assist small and medium sized enterprises, as well as self-employed workers, impacted by the COVID-19 outbreak. This new package triples the initial financial aid package of ¥500 billion introduced in February, to a total of ¥1.6 trillion. The package consists of low interest loans to SMEs facing shortage of liquidity. To qualify for a zero-interest loan, a business must be facing a sales decline of at least 15-20%, compared with last year’s numbers. Companies and individual business operators facing a sales decrease of 5-14% can apply for loans with an interest-rate of less than 1%. Major Japanese companies will be assisted by the Japan Bank for International Cooperation and the Development Bank of Japan.

To help businesses combat the pandemic’s effect on the world’s supply chain, the government will also assist firms investing in equipment and facilities that support teleworking. The Ministry of Health, Labour, and Welfare will also grant income compensation subsidies of ¥8,330 per day to companies whose full-time and non-regular employees take leave (to care for their children) from February 27th to March 31st— funds will not be extended to parents taking leave whose children go to junior-high or above. It will provide subsidies of ¥4,100 a day to freelance workers obligated to take care of their children at home due to school closures.

Despite this, the government has urged schools to offer ad-hoc child care services and has lifted nationwide school closures for the April term. The government has also included provisions for the purchase of face masks to be used in hospitals and public medical facilities. As part of an extraordinary budget (mentioned below) to be passed this month, the government plans to hand out cash for the Tourism and Food & Beverage industries as well.