Akita Bank has announced a new program involving service contracts with individuals preparing to launch a business, providing up to the equivalent of ¥13 million. Up to 3 people will be eligible, for a period of up to 24 months.
In October, Akita Bank announced a service-contract program called “Scrum Commons” for individuals preparing to launch a business. The bank will pay a monthly service fee of ¥200,000 for up to 24 months and cover up to ¥8.2 million in demonstration costs. Up to 3 participants will be selected, and the program is expected to proceed on the condition that they can focus on business development in Akita Prefecture.
The scheme is intended to provide support at a stage when sales are difficult to see before commercialization. Rather than providing loans or equity investment, the bank will jointly create businesses with the participants. Although the program includes support for living expenses, the publicly available materials do not clarify matters such as intellectual property, ownership or whether equity investment is involved, and these points are expected to require confirmation at future briefings.
The predecessor program, “Scrum,” had also gradually deepened its involvement, evolving from a hands-on support model to demonstration support and then to the current initiative incorporating funding. Bank employees are expected to enter the field of business creation, with local job creation and expansion of business relationships serving as evaluation criteria.
The ceiling is ¥39 million in total, based on a maximum of ¥13 million for each of 3 participants, and the initiative is emphasized as proceeding on the premise that there is no repayment obligation. Over the longer term, it is said to have the potential to lead to the creation of local business partners and the development of borrowers.