Kitakyushu City SME Loans: Economic Response, Start-up and Disaster Recovery Funds, and FY2026 ChangesWhen money runs short, you can borrow at low interest under the city's programs
Working with 14 partner banks, Kitakyushu City offers long-term, fixed-rate, low-interest loans for small and medium-sized businesses. The Economic Response Fund (general frame) for falling sales or margins has a JPY 100 million limit, the Start-up Support Fund JPY 35 million, and the Disaster Recovery Fund JPY 50 million (JPY 100 million with special approval by the mayor). In FY2026, guarantee fee rates and some interest rates were revised.
Key points
- Economic Response Fund (general frame): any one of sales down 3% or more year on year, gross or operating margin down 3 points or more, or unit purchase prices up 10% or more year on year (accounting for 10% or more of cost of sales). Limit JPY 100 million, up to 10 years (grace up to 2 years), interest 1.40%, guarantee fee 0.36% to 1.38%
- Start-up Support Fund: for those starting a business and individuals or companies under 5 years old. Limit JPY 35 million, up to 10 years (grace 1 or up to 2 years). Interest is 1.50% for the general frame and 1.40% for the special frame (women, men under 35 or 55 and over, people moving in from outside the city and others). Guarantee fee 0.00% the first time and 0.36% to 1.38% afterward
- Disaster Recovery Fund: for SMEs whose business was disrupted by typhoons, floods, fires and the like. Limit JPY 50 million (JPY 100 million with the mayor's special approval), up to 10 years (grace up to 2 years). Interest is 1.50% for the general frame and 1.30% for the special frame. Guarantee fee 0.36% to 1.38% (general) and 0.00% (special)
- FY2026 changes: the guarantee fee rate for the Management Strengthening Support Fund changed to match the national guarantee scheme revision, some interest rates were revised because market rates rose, and the chain-bankruptcy prevention loan ended on March 31, 2026
- Common conditions: an office in the city and currently operating, no unpaid city taxes, and an industry covered by the Fukuoka Credit Guarantee Association. Typical documents include a city tax clearance certificate, financial statements or tax return, and a corporate registry certificate
What to do in practice
- Compare your sales, margins and purchase prices with the same period last year and check whether you meet the Economic Response Fund requirements
- Check the available funds and the latest interest and guarantee fee rates at the bank and the credit guarantee association
- Prepare required documents such as tax clearance certificates and financial statements early
When sales of a shop or company fall, when someone starts a new business, or when a typhoon or fire causes damage, Kitakyushu City works with banks to offer loans with low and fixed interest. In FY2026, some interest rates and other terms were revised.
- ○Applies: Sales fell 3% or more from the same time last year
- ○Applies: The profit margin fell 3 points or more
- ○Applies: Material purchase prices rose 10% or more from last year
- ×Does not apply: You have unpaid city taxes
Points
- When sales fall, there is a program to borrow up to JPY 100 million
- For people starting a new business, up to JPY 35 million
- After typhoon or fire damage, up to JPY 50 million (JPY 100 million if the mayor specially approves)
What the words mean
- Loan
- Borrowing money from a bank or similar lender
- Grace period
- A period right after borrowing when you do not have to repay the principal
- City of Kitakyushu: Kitakyushu City: Guide to the Economic Response Fund (general frame)
- City of Kitakyushu: Kitakyushu City: Start-up Support Fund
- City of Kitakyushu: Kitakyushu City: Guide to the Disaster Recovery Fund
- City of Kitakyushu: Kitakyushu City: SME loan program
This article summarizes and explains materials published by government agencies and is not advice on any individual case. Rules can change, so for actual procedures and decisions always check the latest original materials and consult professionals such as tax accountants or labor and social security attorneys. English, Simplified Chinese and Traditional Chinese versions are translations prepared from the Japanese articles for convenience. If anything differs, the Japanese text and the original source take precedence.