Gwanak-gu Temporarily Lowers SME Loan Interest Rates to 0.8% Starting April

Additional Loan Support Planned Through Supplementary Budget in April... Focus on Recovery from COVID-19 Damage

[Asia Economy Reporter Jongil Park] Gwanak-gu (Mayor Park Junhee) is significantly lowering the interest rates on loans from the Small and Medium Business Development Fund to support small and medium-sized enterprises (SMEs) and small business owners facing financial difficulties due to the impact of COVID-19.

Following last year's reduction of the loan interest rate from 1.8% to 1.5%, this year it is being further lowered to an ultra-low rate of 0.8%.

This will be implemented temporarily starting in April and will support 63 companies currently holding loans, 30 companies that were recipients of the first and second rounds of loan support in 2020, as well as future applicants.

Additionally, although the loan scale was originally planned at 2.5 billion KRW this year, due to high demand from companies, it has been decided to support the full amount of approximately 3 billion KRW requested. For additional demand, a supplementary budget will be prepared in April to meet the needs.

A Gwanak-gu official stated, “Once the additional loan support funds are confirmed, applications will be accepted on an ongoing basis until funds are exhausted, and support will be provided promptly.”

The support targets are SMEs and small business owners who have business locations in Gwanak-gu, have been registered for at least six months, and possess collateral ability according to bank credit regulations such as real estate. However, industries such as finance, real estate, lodging, bars, tobacco, alcohol, and other luxury, entertainment, or gambling-related businesses are excluded.

The loan interest rate is 0.8% per annum, with a loan limit of 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.

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

Mayor Park Junhee said, “By lowering the interest rate on the Small and Medium Business Development Fund loans once again, we hope to provide practical support that SMEs and small business owners in the district can feel. We will devise various economic support measures to help the local economy, which has been stagnant due to COVID-19, recover as quickly as possible.”

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