Photo/Illutration A Japanese-style pub is closed temporarily in Tokyo’s Shinbashi district on Jan. 8 after a second state of emergency was declared. (Shiro Nishihata)

Business partners with restaurants and bars in Tokyo and the three neighboring prefectures along with small and midsize businesses hard-hit by the state of emergency will be eligible for lump-sum payouts from the government.

Economy minister Hiroshi Kajiyama announced the relief effort at a news conference on Jan. 12.

Among those eligible, a corporation or a sole proprietor can receive up to 400,000-yen ($3,862) or 200,000-yen payouts, respectively.

The government is seeking to start accepting applications in March after discussing the measure thoroughly.

According to the economy ministry, business operators that service restaurants or bars in Tokyo and the three neighboring prefectures directly or indirectly will be eligible for the cash handouts.

In addition, small or midsized operators whose sales in January or February plummeted by 50 percent or more year on year, affected directly by the government's request to avoid nonessential outings, are eligible for the same payouts.

The operators must provide proof of their decline in sales. If they meet the requirement, businesses in broader categories and wider areas are expected to be added to those eligible for the financial assistance.

Specifically, those businesses will include karaoke parlors, taxi operators and souvenir shops. If more prefectures are placed under the state of emergency, the cash handouts will be extended to cover those areas.

Kajiyama also said that the government will provide financial assistance to event operators by covering cancellation fees for venues if concerts, plays or other events scheduled to be held in the areas brought under the state of emergency are called off.

The amount of the financial assistance is undecided, but will be announced soon.

In addition, financial assistance of up to 100 million yen being offered for small and midsize companies trying to change their businesses amid the pandemic will be prioritized for those most impacted by the state of emergency. Funds for the program were incorporated in this fiscal year's third supplemental budget. 

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