Seoul Jung-gu, Special Loans for Small and Medium Enterprises and Small Business Owners Affected by COVID-19

Jung-gu Special Emergency Allocation of 4 Billion Won SME Development Fund... Visit Jung-gu Office Traditional Markets for Applications from 17th to 28th

Seoyangho, Mayor of Jung-gu, announced an emergency loan support plan to sales facility officials in the Dongdaemun area at the Learning Plaza on the 4th floor of the DDP Fashion Mall, and provided guidance on the response manual and cooperation matters.

[Asia Economy Reporter Jong-il Park] Jung-gu, Seoul (Mayor Seoyangho) is urgently providing special loans to small and medium-sized enterprises (SMEs) and small business owners facing financial difficulties due to the spread of the novel coronavirus.

As small-scale merchants targeting Chinese customers in areas such as Myeongdong and Dongdaemun were directly hit by the novel coronavirus, the district office has decided to urgently allocate and implement a special fund from the SME Development Fund.

SMEs and small business owners located in Jung-gu engaged in food service, lodging, shopping centers, and related industries will be given priority support. The total support scale is 4 billion KRW, which includes 3 billion KRW from the Jung-gu fund and an additional 1 billion KRW of cooperative funds from Woori Bank for small-scale merchants seeking microloans under 30 million KRW.

Applicants must be SMEs under the Framework Act on Small and Medium Enterprises or small businesses and small business owners under the Act on the Protection and Support of Small Businesses, have a business site in Jung-gu, and be registered as business operators.

The Jung-gu fund applies a fixed interest rate of 1.4% per annum, while the Woori Bank cooperative funds will be offered at a low interest rate in the low 2% range per annum. The repayment period is either a 1-year grace period followed by 4 years of equal installments or 5 years of equal installments. The loan limit ranges from 30 million KRW to a maximum of 200 million KRW per company, with the application amount adjusted according to sales.

The application period is two weeks, from the 17th to the 28th of this month. Applicants should prepare ▲loan application form ▲business plan ▲copy of business 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.

Loans are restricted for those subject to credit information management who are deemed unsuitable after guarantee screening, companies with national or local tax arrears, and businesses in finance, insurance/pension, entertainment bars, etc.

Mayor Seoyangho of Jung-gu said, "This emergency loan implementation is a decision made to support SMEs and small business owners suffering from business and financial difficulties due to the impact of the novel coronavirus," adding, "We will do our best to minimize the damage suffered by residents due to this situation."

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