Gyeongsangnam-do to Provide 150 Billion KRW in Policy Funds for Small Business Owners in 2020
Quarterly Support of 85 Billion KRW in General Funds, Annual Support of 65 Billion KRW in Special Funds
New Support for Small Business Credit Guarantee Fees (0.2~0.3%) to Ease Financial Burden
Expanded Handling Banks to 7 First-Tier Financial Instit
[Asia Economy Yeongnam Reporting Headquarters Reporter Son Tae-seok] Gyeongsangnam-do will provide loan support of 150 billion KRW in policy funds (85 billion KRW in general funds, 65 billion KRW in special funds) starting from the 15th to help small business owners struggling due to prolonged local economic downturn.
According to Gyeongsangnam-do on the 13th, the scale of policy fund support increased by 5 billion KRW compared to last year. The province plans to reduce the burden on small business owners by supporting guarantee fees, thereby enhancing the on-site impact.
The target is small business owners registered within the province. From the 15th until depletion, support will be provided for first-quarter general funds (32 billion KRW) and five types of special funds (Hope Do Dream, Startup, Job Creation, Small Business, Chuseok Holiday).
Additionally, partial support for guarantee fees will be newly provided for loans under the Employment and Industrial Crisis Response Special Zone (0.3%) and Zero Pay, Win-Win Cooperation Shopping District, and Joint Purchase Exclusive Guarantee (0.2%) products. The handling banks will also be expanded to seven contracted banks (NongHyup, Gyeongnam, Kookmin, Shinhan, Woori, Hana, Busan).
The loan amount is limited to 100 million KRW per company, with conditions of a 2-year maturity lump-sum repayment or a 2-year grace period followed by 3 years of equal installments. Interest of 2.5% will be supported for 2 years, and a loan interest rate ceiling system will be implemented, limiting the maximum loan interest rate to within 3.0%.
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Kim Ki-young, Director of the Job Economy Bureau of Gyeongsangnam-do, said, “Since last year, we have been striving to alleviate the financial difficulties of small business owners through expanded fund size and customized fund support.” He added, “This year as well, we will continue to expand investments to improve the economy felt by residents on-site and focus on easing financial burdens.”
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