April 22, 2020
Hiroshima Prefectural governor Yuzaki announces small business relief strategy… then throws the cat amongst the pigeons.
The day before Hiroshima governor Yuzaki’s urgent call for non-essential businesses to shut down until May 6 was to come into effect, the prefectural government announced its relief measures for small businesses affected by the closures.
Relief for small businesses during temporary shutdown
Small businesses that cooperate with the prefecture’s urgent request by shutting down from midnight April 22 to 11:59 pm on May 6 will receive a subsidy of between ¥100,000 and ¥500,000. Businesses will be able to apply for the subsidy from April 30 and it is hoped payments will begin in early May. The amount of subsidy will depend on factors such as number of establishments owned and whether a business owner has other employees.
Dining establishments that constrain their hours to between 5 am and 8 pm and cease sales of alcohol by 7 pm will qualify for subsidies of ¥100,000 or ¥150,000. As long as customers do not enter the business, take out services are allowed to continue without affecting the right to receive the subsidy.
Many small restaurants, bars and businesses seem relieved that they will receive some support and there are some among them that are relieved that feel that they are now able to close. The Hiroshima governor announced that the names of businesses that cooperate with the request to shut down will be listed on the Hiroshima Prefecture website in recognition in their help to prevent the further spread of the coronavirus.
Source: Chugoku Shinbun
Would you give up your ¥100,000 coronavirus subsidy?
It is estimated that the number of business that will qualify for the subsidies numbers over 20,000 and the relief package will cost around 210 billion yen.
As for where the money will come from, it is reported that the prefecture will cover two thirds of the subsidies and the other third will be covered by city or towns where the businesses are located.
Governor Yuzaki threw the cat amongst the pigeons when he mentioned that, as the prefecture lacks the necessary funds, he is considering requesting that employees of the prefectural government, who’s salaries continue to be paid during the voluntary shutdown, contribute the ¥100,000 subsidy they are to receive, along with all residents of Japan, from the national government next month to the fund.
If all 4451 people employed by the prefectural government contributed their payment fro the national government, it would raise around 445 million yen, just under 25% of the total amount required. Union leaders representing prefectural employees expressed surprise.
Source: Chugoku Shinbun
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