Toyota City Credit Guarantee Fee Subsidy (Working Capital Support for In-City SMEs and Founders)

(1) Overview: Under the Toyota City Credit Guarantee Fee Subsidy Ordinance (effective April 1, 2026), Toyota City partially reimburses the lump-sum credit guarantee fee paid by in-city SMEs that borrow designated loan facilities backed by the Aichi Credit Guarantee Association. Covered loans include the Small Business Promotion Loan, Toyota City Commerce & Industry Business Loan, Economic Environment Adaptation Loans (Start-up Support / Business Succession / Disaster Response), and Safety-Net No.2 / No.4 certification-related loans, aiming to strengthen the working capital of local commerce and industry. (2) Eligibility: Applicants must be SMEs with their address (or HQ for corporations) and a place of business in Toyota City, qualified for guarantees by the Aichi Credit Guarantee Association, and must have borrowed an eligible facility from one of the designated financial institutions (MUFG, SMBC, Juroku, Sanju-San, Aichi, Nagoya, Ogaki-Kyoritsu, Hyakugo banks, and the Okazaki, Hekikai, Toyota, Seto shinkin banks), use the funds within the city, pay the guarantee fee in lump sum, have no Toyota City tax arrears, and meet all 13 conditions in Article 4 including anti-organized-crime requirements. (3) Eligible expenses and benefits: The subsidy applies to the lump-sum credit guarantee fee. The subsidy-eligible portion equals the guarantee fee multiplied by the Eligible Loan Ratio = (loan amount - refinanced amount) / loan amount (rounded down to two decimal places). Fees relating to deferred repayment of pre-existing debt are excluded. Applications use Forms 1-7 (depending on loan category), attaching the lump-sum payment proof, credit guarantee certificate copy, refinance documentation, list of officers, start-up plan, succession plan, recommendation by the Chamber of Commerce / Society of Commerce and Industry, or Toyota City SDGs Certificate as applicable. (4) Rate, cap, schedule, application points: Standard subsidy rate is 75%; Toyota City SDGs-certified businesses receive 100%. The cap is JPY 500,000 per case (rounded down to the nearest 1,000 yen). The application deadline is strict: within 14 days of the loan disbursement date (or within 14 days of in-city business confirmation if borrowed pre-launch). A handling financial institution may file on behalf of the applicant. The ordinance runs from April 1, 2026 to March 31, 2027, and electronic filing through Toyota City's e-government system is permitted.