Seoul Jung-gu, 1st Quarter Small Business Development Fund Loan Support

Loan support of 3.5 billion KRW from Q1 Small Business Development Fund... Applications accepted at Jung-gu Office traditional markets and in-person from 13th to 28th

[Asia Economy Reporter Park Jong-il] Jung-gu, Seoul (Mayor Seo Yang-ho) will provide loan support from the first quarter Small and Medium Enterprise (SME) Development Fund totaling 3.5 billion KRW to help alleviate financial difficulties of small and medium-sized enterprises and small business owners.

This quarter's loan scale includes 2.5 billion KRW from the SME Development Fund, plus an additional 1 billion KRW of Woori Bank cooperative funds allocated for small-scale microloans under 30 million KRW for small business operators.

Applications are open to SMEs under the Framework Act on Small and Medium Enterprises and small businesses and small business owners under the Act on the Protection and Support of Small Businesses, provided they have a business site in Jung-gu and are registered as business operators.

Applicants who are subject to credit information management but are deemed unsuitable after guarantee screening, or those in finance, real estate, luxury or speculative businesses, will be restricted from loans, so caution is advised.

Microloans under 30 million KRW will have simplified procedures within half of the quarterly loan amount. Upon receipt, the loan institution is notified immediately to proceed with the loan first, followed by post-review. The loan interest rate is supported at around 2% per annum, and execution occurs within 15 to 20 days after application.

Loans exceeding 30 million KRW can be applied for up to one-quarter of the previous year's sales per company: up to 300 million KRW for manufacturers and up to 200 million KRW for other industries. The loan interest rate is supported at a low 1.4% per annum, and repayment can be made choosing between a 1-year grace period with 4 years of equal installments or 5 years of equal installments.

The application period is from the 13th to the 28th. Applicants should prepare ▲loan application form ▲business plan ▲copy of business site lease contract ▲value-added tax standard certificate (2015?2019), and visit the Jung-gu Office Traditional Market Division (3396-5043). Application forms can be downloaded from the 'SME Development Fund Loan Guide' on the Jung-gu website.

Eligible companies must submit collateral such as real estate or credit guarantees. Companies lacking collateral capability can receive special credit guarantees up to 50 million KRW per company from the Seoul Credit Guarantee Foundation through the district's recommendation.

The district plans to implement loan support totaling 10 billion KRW in four rounds this year (7.5 billion KRW from district funds and 2.5 billion KRW from Woori Bank cooperative funds).

Additionally, female-led companies, startups established within one year as of the loan application date, social enterprises, and companies for the disabled will receive extra points during loan eligibility review to actively support companies realizing social value.

Seo Yang-ho, Mayor of Jung-gu, said, "We are continuously researching and discovering various economic revitalization plans and support measures to revive urban industries," adding, "We will work hard to make Jung-gu a place where local SMEs and small business owners can thrive."

This content was produced with the assistance of AI translation services.