Incheon City Expands Business Stabilization Funds for Financially Vulnerable Small Business Owners... Up to 20 Million Won

'Hope Dream Management Stabilization Fund' 25 Billion KRW Scale, Ultra-Low Interest Rate of 0.9%

Incheon City Hall

[Asia Economy Reporter Park Hyesook] Incheon City will expand support for the "Hope Dream Business Stabilization Fund" worth 25 billion KRW starting from the 31st to assist financially vulnerable small business owners suffering from the impact of the novel coronavirus infection (COVID-19).

The city, through the executing agency Incheon Credit Guarantee Foundation, is joining forces with Hana Bank to urgently provide ultra-low interest business stabilization funds at an interest rate of around 0.9% to vulnerable small business owners who have difficulty accessing financial institutions, including persons with disabilities, basic livelihood security recipients, near-poverty class, multicultural families, single-parent families, families with multiple children, North Korean defectors, and those with credit ratings below grade 6.

This business stabilization fund has been doubled from the original 12.5 billion KRW to 25 billion KRW, and the interest differential compensation has been raised from 1% to 1.5%, launching about a month earlier than planned.

An official from Incheon City stated, "Vulnerable small business owners have had difficulty obtaining bank loans and faced the risk of high-interest loans around 20% per annum from private lenders and loan sharks. We expect that this ultra-low interest loan at around 0.9% will provide relief to financially struggling vulnerable small business owners and prevent the vicious cycle of using high-interest loans."

Meanwhile, Incheon Credit Guarantee Foundation plans to minimize the guarantee fee burden for small business owners by lowering the fee from 1% to 0.5%, and has organized a dedicated team to shorten the loan period as much as possible and simplify the guarantee screening process for prompt support.

Detailed information about the small business owners' business stabilization fund can be found on the Incheon Credit Guarantee Foundation website (www.icsinbo.or.kr), and applications can be made through all branches of Hana Bank.

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