Action Plan under Recovery Assistance Project

Under the UNIQLO Recovery Assistance Project, PFJ is working to promote employment and the self-sustaining recovery of small and medium-sized businesses in the Sanriku area.

1

Disaster area recovery/new business creation assistance:
Provide support to local area entrepreneurs who are working on new projects, services and social businesses that emerged after the disaster, in response to local needs. PFJ provides assistance to approximately three projects a year through an open application process, with maximum assistance of 1.5 million yen per project.

2

Employment aid for businesses affected by the disaster:
Help to restart businesses and hire people for companies with 20 employees or less who were directly or indirectly affected by the earthquake and tsunami. PFJ provides support to approximately five employees per year, with 100,000 yen per month for each newly hired employee.

3

Subsidized interest payment program for recovery assistance loans:
As a disaster recovery loan offered by the Kesennuma Shinkin Bank, the program promotes access to financing by providing subsidized interest payments for two years to small business operators who are struggling to raise funds. PFJ provides support to about five businesses per year.
PFJ also plans to provide management support to small business in need, as necessary.

After identifying the operational needs of businesses by monitoring their operations, we will work to match the right people to the right jobs.

Progress of Activities under Recovery Assistance Project (As of December 31, 2012)

In the first 18 months of operation, the number of businesses that received support from PFJ reached 211.
A total of 208 businesses received support from the Sanriku Tomodachi Fund for Economic Recovery, which is funded by U.S.-based NGO Mercy Corps and Nvidia, among other entities. One person received aid from a program funded by Boeing. That program was started in September 2012 to improve employment opportunities for people with disabilities.

These programs provide assistance to a wide range of projects, including reconstructing a badly damaged hotel, restoring a fish-processing plant and running daycare centers and elderly care facilities. They also help local residents by starting new businesses in the field of renewable energy and creating local social businesses.

Through the UNIQLO Recovery Assistance Project, PFJ has decided to provide support to two additional small businesses in the near future. It is also rolling out the program in other areas. In November 2012, PFJ started the Minamisoma Tomodachi Fund for Economic Recovery for the city of Minamisoma, which was affected by the earthquake, tsunami and nuclear accident.

Reports

When PFJ started the Recovery Assistance Project, there were doubts about whether struggling small businesses damaged by the earthquake would be able to survive, given the tough business environment and other issues. All of the companies that the NGO has supported are still in business. They are all focusing on rebuilding and expanding their operations. Additionally, 68% of the entrepreneurs that PFJ provided assistance to have posted a profit.

This project has had a positive impact on efforts to create jobs at the community level. One entrepreneur who had been making and selling products by himself decided to expand and market his products throughout Japan. He succeeded in turning his business into a company that employs nine people. PFJ wants to continue to find similarly strong-willed people who are trying to rebuild and expand their businesses in the wake of the disaster. By providing financial and management support to such companies, the organization can help rebuild and create jobs throughout the region.

Future Plans

PFJ plans to continue to offer support, particularly for new businesses. It is openly recruiting entrepreneurs and plans to select a few prospects within the year. The organization has almost reached its original target for supporting small businesses that require help paying their employees. In the future, it plans to focus on tracking the progress made by the small businesses it supports.

PFJ has received a lot of requests from other disaster-affected communities. It is now preparing to expand into new areas. With the assistance of the Japan-America Society of Oregon and Mercy Corps, PFJ launched the Minamisoma Tomodachi Fund for Economic Recovery jointly with Abukuma Shinkin Bank for businesses in the city of Minamisoma in November 2012. It is also getting ready to start support programs in other areas.