JFC Startup Loan Guide for Foreign Founders in Japan
How the Japan Finance Corporation's New Business & Startup Support Loan works, who can apply, and how to prepare an application that gets approved.
If you are starting a business in Japan, the government-owned Japan Finance Corporation (JFC / 日本政策金融公庫) is usually your best first source of bank financing. Unlike private banks, JFC's mission is to support new businesses, so it lends to companies with no track record, often without collateral or a personal guarantee.
This guide explains the JFC startup loan in plain English, with the points that matter most to foreign founders.
1. Loan Overview at a Glance
| Official name | New Business & Startup Support Loan (新規開業・スタートアップ支援資金) |
| Who can apply | People starting a new business, or businesses within roughly 7 years of launch |
| Maximum amount | ¥72 million in total, of which up to ¥48 million for working capital |
| Repayment: equipment | Up to 20 years, including up to 5 years' grace period |
| Repayment: working capital | Up to 10 years, including up to 5 years' grace period |
| Collateral / guarantor | Generally not required during the startup phase, including no personal guarantee from the owner (terms are discussed case by case) |
| Own-funds requirement | No formal minimum (the old 10% rule was removed), but your own funds still matter a lot in the review |
| Interest rate | Fixed. Preferential rates may apply to women, founders under 35 or aged 55+, and certain other categories. See current rates on the JFC website |
| Typical timeline | 1–2 months from application to funding |
The "grace period" means you pay only interest, not principal, during the first months or years of the loan, which gives your business time to generate revenue.
2. Can Foreign Residents Apply?
Yes. Foreign nationals living in Japan regularly receive JFC startup loans. What JFC looks at is not your nationality, but whether you can run the business and repay the loan in Japan for the full term.
In practice, your residence status affects how the application is reviewed:
Permanent Resident, Spouse of a Japanese National, Long-Term Resident
Reviewed much like a Japanese applicant.
Business Manager visa (経営・管理)
Eligible, but your remaining period of stay and the realistic outlook for renewal are considered. This can affect the loan amount or repayment term.
Other work visas (e.g. Engineer/Specialist in Humanities)
You will usually need to change to a status that allows you to run the business. Plan your visa and loan together.
JFC does not publish fixed rules by visa type. Each case is judged individually, which is why a well-prepared application matters.
Not sure where you stand?
3. What JFC Evaluates
Removing the formal own-funds requirement did not make the review easier. Loan officers focus on five areas:
Your own funds and where they came from
How much you are investing yourself, and whether bank statements show you saved it over time. A large, sudden deposit just before applying raises questions unless you can document its source (e.g. a gift or loan from family, with proof).
Relevant experience
Years of experience in the same industry, in Japan or overseas, is one of the strongest approval factors. Be ready to prove it (employment certificates, contracts, portfolio).
A realistic business plan
Sales forecasts need a clear basis: expected customers, unit prices, capacity, and confirmed deals where possible. Every yen of the loan should map to a specific use, backed by quotes.
Credit history and payment record
Unpaid taxes, residence tax, pension or health insurance contributions, phone bills, or credit cards can seriously hurt your application. Check and clear these before you apply.
The interview
You must be able to explain your plan and numbers in your own words. The interview is conducted in Japanese; if your Japanese is limited, preparation and interpretation support are essential.
4. Step-by-Step Timeline
| Step | What happens | Typical timing |
|---|---|---|
| 1. Preparation | Gather documents, draft the business plan (創業計画書), obtain quotes | 2–6 weeks (depends on you) |
| 2. Application | Submit online or at a JFC branch | Day 0 |
| 3. Interview | Meeting with a JFC loan officer; site visit possible | About 1–2 weeks after applying |
| 4. Review | JFC assesses the plan; may request additional documents | About 2–3 weeks after the interview |
| 5. Decision & contract | Approval notice, loan agreement signed | — |
| 6. Funding | Money transferred to your business bank account | About 1–2 months after applying |
You need a Japanese bank account to receive the funds. For a company, this means a corporate account, which can itself take several weeks to open. Start early.
5. Required Documents Checklist
Core documents
- Loan application form (借入申込書)
- Business plan in JFC's format (創業計画書)
- Residence card (front and back)
- Bank statements (通帳) showing how you built your own funds, usually the last 6–12 months
- Quotes (見積書) for equipment, renovation, or other capital purchases
Often requested
- Certificate of residence (住民票)
- Certificate of registered matters (登記簿謄本) and articles of incorporation, if already incorporated
- Office or shop lease agreement (or draft)
- Proof of experience (employment certificates, resumes)
- Tax payment certificates or residence tax records
- Licenses or permits required for your business (e.g. restaurant, real estate, travel)
Want a bilingual (English/Japanese) copy of this checklist? Ask for it in your free consultation.
6. Business Manager Visa: The 2025 Rule Changes and Your Business Plan
From October 16, 2025, the requirements for the Business Manager visa became much stricter. The key changes:
- Minimum capital raised from ¥5 million to ¥30 million
- At least one full-time employee (Japanese national, permanent resident, or similar status)
- Japanese language ability (around JLPT N2 / CEFR B2) by the applicant or a full-time employee
- 3+ years of management experience or a master's-level degree in a relevant field
- The business plan must be reviewed by a qualified professional: an SME Management Consultant (中小企業診断士), Certified Public Accountant, or Certified Tax Accountant
Existing visa holders have a transition period until October 16, 2028.
Why this matters for your loan: your visa application and your JFC application now both depend on a credible, professionally reviewed business plan. Preparing them together saves time and ensures your numbers are consistent across both.
Whether borrowed funds can be counted toward the capital requirement depends on your specific situation. Always confirm with an immigration specialist (Administrative Scrivener / 行政書士) before you plan your capital structure.
7. Common Reasons Applications Are Rejected
- Own funds that cannot be explained or that appeared suddenly
- No experience in the industry
- Sales forecasts with no clear basis
- Unpaid taxes, social insurance, or bills
- A remaining period of stay that is too short compared with the loan term
- Not being able to explain the plan in the interview
A rejection is recorded, and reapplying usually requires a meaningful change in circumstances. It is far better to prepare properly the first time.
8. How HAKATAYA Helps
HAKATAYA is led by a Japanese government-certified SME Management Consultant (Chusho Kigyo Shindanshi), the national qualification for business plan evaluation. We review your plan through the same lens lenders use.
Funding readiness check
We assess your own funds, experience, credit record, and residence status before you apply.
Bilingual business plan
Written in English for you, and in Japanese in JFC's format.
Application support
Document preparation and submission guidance.
Interview coaching
Practice sessions in Japanese, with the questions loan officers actually ask.
Visa-ready plan review
The professional business plan review now required for the Business Manager visa.
After funding
Incorporation, bank accounts, bookkeeping, and tax, coordinated through our licensed partner professionals.
Tax filings, company registration, and visa applications are handled by our licensed partner professionals (Zeirishi, Shiho-shoshi, Gyoseishoshi, Sharoushi).
Ready to prepare your JFC application?
Book a free 30-minute consultation.
Figures in this guide were last reviewed in September 2026. Always confirm current terms on the official JFC website before applying.
HAKATAYA acts as your English-speaking concierge in Japan, bridging foreign founders with trusted accounting and legal experts.