Mapo-gu Lowers Loan Interest Rates and Rent for Small Businesses Affected by COVID-19

Measures to Support Business Stability for Small and Medium-Sized Enterprises Affected by COVID-19... Interest Rate on SME Development Fund Loans Reduced from 1.5% to 1% Starting March 16

[Asia Economy Reporter Park Jong-il] Mapo-gu (Mayor Yoo Dong-gyun) is implementing support measures for small and medium-sized enterprises (SMEs) and small business owners struggling due to the economic downturn caused by the spread of COVID-19.

First, the district has lowered the interest rate on the SME Development Fund loans from the existing 1.5% to 1%, opening the way to ease financial difficulties. This decision aims to reduce the interest burden on small business owners and revitalize local commercial districts hit hard by COVID-19.

The interest rate reduction will be applied from March 16 through the end of this year, benefiting both new and existing borrowers during this period.

The SME Development Fund, budgeted at a total of 3 billion KRW this year, provides support of up to 200 million KRW per company. The repayment terms are a 2-year grace period followed by 3 years of equal installment repayments.

Additionally, in line with the private sector’s ‘Good Rent’ campaign, the district plans to reduce rent for tenants of public facilities currently closed to prevent the spread of COVID-19.

The rent reduction targets 25 stores located within public facilities such as Mapo Central Library, Mapo Art Center, Seongmisan Gymnasium, and Mapo-gu Health Center.

These stores have suffered significant losses as their main customers are users of the public facilities, and the closure has led to a sharp decline in store visitors and sales.

The specific rent reduction period and scale will be finalized after review by the Mapo-gu Shared Property Deliberation Committee.

The district also provides low-interest loans of 1-2% through the Food Promotion Fund to ease the economic burden on small food hygiene businesses and support facility improvements. This program is open year-round to all food hygiene businesses located within the district.

Yoo Dong-gyun, Mayor of Mapo-gu, said, “Due to the prolonged impact of COVID-19, consumer sentiment has frozen, and economic activities have contracted more than ever. We hope that these loan interest rate and rent reduction measures will help alleviate the financial difficulties of SMEs struggling with the domestic economic downturn.”

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