Impact of Middle East Situation on Local Economy and Support Measures

To understand the impact of the Middle East situation on local SMEs, the city conducted an emergency survey in collaboration with Kanagawa Shinkin Bank and Shonan Shinkin Bank. The results show that 55.8% of companies are currently affected, and 88.4% are concerned about future impacts. The main issues are difficulty in obtaining materials (37.1%) and rising costs (25.1%), with impacts spreading across manufacturing, construction, and retail. In response, the city will allocate 26 million yen in the June supplementary budget to fully subsidize credit guarantee fees, supporting a new loan framework totaling 800 million yen to assist with cash flow. This subsidy makes it easier for SMEs to secure loans. Additionally, for city-ordered projects, the city is strengthening responses to material price hikes and delivery delays by reviewing unit prices and adjusting construction material protocols.