Gwanak-gu, 2nd Loan Support from SME Development Fund for Early Overcoming of COVID-19

Total Support Amounting to 2.5 Billion Won This Year... Rapid Support via Rolling Applications from the 10th Until Funds Are Exhausted... 1.5% Annual Interest, Up to 200 Million Won per Company (100 Million Won for Facilities), 2-Year Grace Period, 3-Year Equal Installment Repayment

[Asia Economy Reporter Jong-il Park] Gwanak-gu (Mayor Park Jun-hee) will implement the ‘2020 Gwanak-gu Small and Medium Enterprise Development Fund Additional Loan Support’ starting from the 10th to establish a recovery foundation for damages suffered by small and medium-sized enterprises and small business owners due to the impact of COVID-19.

The total loan scale for this year is 2.5 billion KRW. Among this, for the 15 companies that applied in the first round, a total of 1.698 billion KRW in support funds is currently undergoing collateral evaluation by Woori Bank and the Credit Guarantee Foundation, and the remaining amount will be additionally provided to small and medium-sized enterprises and small business owners facing difficulties in fund management.

Previously, applications were accepted in the first and second halves of the year, but this year, to minimize COVID-19 damage, applications will be accepted on an ongoing basis from March 10 until funds are exhausted.

A Small and Medium Enterprise Development Fund Operation Committee will be held on the last week of every month to select loan priority and recipients, and loan support will begin from the first week of the following month.

The loan interest rate is 1.5% per annum, the loan limit is up to 200 million KRW per company (100 million KRW for facilities), and the repayment period is a 2-year grace period followed by 3 years of equal installment repayments.

Eligible applicants are small and medium-sized enterprises and small business owners who have a business place in Gwanak-gu, have been registered for more than 6 months, and possess collateral ability according to bank credit regulations such as real estate. However, industries such as finance, real estate, lodging, pubs, tobacco, alcoholic beverages, and other luxury, entertainment, and gambling industries are excluded.

Applications can be submitted by visiting the Gwanak-gu Office Regional Commercial Revitalization Division after prior consultation on collateral scope at Woori Bank Gwanak-gu Branch and Seoul Credit Guarantee Foundation Gwanak Branch, preparing the application form, business plan, business registration certificate, and financial statements for the past 3 years.

The district office is expected to make every effort to revive the depressed local economy by prioritizing early execution of loans to small business owners whose sales have decreased due to COVID-19 through loan support.

Mayor Park Jun-hee said, “I hope the Small and Medium Enterprise Development Fund loan support will greatly help small and medium-sized enterprises and small business owners struggling with reduced consumer sentiment and economic recession,” and added, “We will devote all our efforts to revitalize the local economy damaged by COVID-19.”

For more detailed information regarding the ‘2020 Gwanak-gu Small and Medium Enterprise Development Fund Loan Support,’ please check the Gwanak-gu website (News & Notices → Public Announcements) or contact the Regional Commercial Revitalization Division at ☎879-5745.

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