Japan to Set Special Aid Category for Community-Based Startups

Tokyo, May 30 (Jiji Press)--Japan's internal affairs ministry plans to set a special category under its existing support program for community-based startups, in order to back up projects using artificial intelligence.

The ministry aims to promote so-called AI transformation, in which companies reform themselves by placing AI at the center. It will request related funds under the central government's fiscal 2027 budget.

Under the new category, the central and local governments will provide aid to regional companies that launch new businesses using unsecured loans from regional financial institutions to help curb the initial costs, including for facility construction and equipment purchases.

The central government will provide special tax grants to local governments as resources for their aid to such businesses.

A larger amount of loans from local financial institutions will lead to greater aid from the central and local governments. The aid cap per project for fiscal 2026 will be set at 30 million yen to 55 million yen.

[Copyright The Jiji Press, Ltd.]