Hojokin Flash Releases Study on Utilizing Subsidies for Post-Disaster Recovery for SMEs

## Hojokin Flash Study: Disaster Prevention Subsidies Often Cover Recovery Costs for SMEs Hit by Typhoons and Earthquakes

Hojokin Flash (https://hojokin-kensaku.jp/), a service providing AI-driven search and application support for grants and subsidies in Japan, has analyzed 15 programs targeting SMEs that are currently accepting applications as of May 17, 2026.

While disaster prevention and BCP (Business Continuity Plan) subsidies are often associated with proactive measures like seismic retrofitting or stockpiling supplies, current programs for SMEs predominantly support the covering of post-disaster recovery expenses. Businesses already affected by typhoons or earthquakes can reduce their out-of-pocket recovery costs by identifying applicable programs early.

■ Summary of Analysis

(1) For SMEs already affected by typhoons or earthquakes, support is available that allows for applying for facility recovery costs and machinery replacement within a single program. About 60% of these programs offer a subsidy rate of 2/3 or more. It is advisable to first organize what was damaged and estimate potential costs to narrow down candidates.

(2) Regarding target size, about 70% of programs for SMEs also apply to sole proprietors, and about half include small-scale businesses. Even if a program says it is for "SMEs," independent workshop owners or businesses with few employees may also be eligible; size should not be a reason for initial disqualification.

(3) In terms of eligible expenses, equipment purchase costs and building renovation costs are the most common, allowing for the replacement of machinery and factory/store renovations in a single application. Approximately 90% of the total covers ranges from under 500,000 yen to the 5 million yen bracket, allowing candidates to be selected incrementally based on the scale of damage.

■ Survey Overview

Target: SME-focused grants and support programs currently accepting applications
Method: Analysis of public information posted on Hojokin Flash
Purpose: To demonstrate that disaster prevention and BCP subsidies can be used not only for 'preparedness' but also as recovery expenses, and to organize current open support programs to help companies find candidates based on scale, expenses, and amounts.
Period: May 17, 2026 (snapshot)
Area: Nationwide
Number of cases: 15
Organization: Hojokin Flash (operated by Franca AI, Inc.)

■ Key Findings

[Who is eligible?]
Source: Hojokin Flash (Internal database) / Date: May 17, 2026
Most programs labeled for "SMEs" also cover sole proprietors and small businesses simultaneously.

Businesses hesitant about the term "SME" often find they are actually eligible. For instance, the "2024 Noto Peninsula Earthquake Business Reconstruction Subsidy (FY2025)" (upper limit 1 million yen) by Ishikawa Prefecture covers SMEs, sole proprietors, and small businesses alike, regardless of legal entity or employee count.

The "Disaster-Affected SME Reconstruction Support Subsidy (FY2025 Typhoon No. 15)" (upper limit 2 million yen) by Shizuoka Prefecture also has a structure where subsidy rates are boosted for smaller businesses (1/2 for SMEs, 2/3 for small-scale businesses). Even if the target field says "SME," checking the scale category may reveal eligibility for higher subsidy rates.

■ Full Survey Report (PDF)
Those who want to confirm if they can apply with their scale of damage or if they can combine machinery replacement and building repairs can download the free survey PDF from the link below.

▶ Survey Page (PDF Download): https://hojokin-kensaku.jp/report/R86955aae26

■ Company Information
Company Name: Franca AI, Inc.
Representative: Shunpei Inoue, CEO
Address: N&E BLD. 6F, 1-12-4 Ginza, Chuo-ku, Tokyo
Website: https://franca.ai