Gyeongnam Province Provides 15 Billion KRW Support to 'Travel and Accommodation Small Business Owners' ... Credit Ratings as Low as Grade 10 Eligible

[Asia Economy Yeongnam Reporting Headquarters Reporter Kang Woo-kwon] Gyeongsangnam-do announced that starting from the 10th, it will provide emergency special funds of 15 billion KRW to small business owners operating travel and accommodation businesses in the province who have been severely affected by the decrease in tourists due to the spread of the novel coronavirus infection (COVID-19) and the extension of 'social distancing.'

This special fund was prepared to help businesses that actively participated in the government's high-intensity physical distancing overcome difficult times.

The support targets small business owners currently operating 'Travel agencies and other travel auxiliary services (industry code n752)' and 'Accommodation industry' (i55) within the province as of the date of guarantee application submission.

The support offers loans up to a maximum of 70 million KRW per business with a 2-year maturity lump-sum repayment or 2-year grace period followed by 3-year equal installments. Interest of 2.5% for 2 years is supported, and the guarantee fee rate, usually around 1%, is fixed at 0.5% to reduce financial burden. The existing credit rating requirement has also been relaxed from grade 6 to grade 10, allowing low-credit individuals to be eligible, addressing blind spots.

In particular, the province is making every effort to reduce the processing time by resolving loan bottlenecks at the Credit Guarantee Foundation through entrusted guarantees with financial institutions, expanding personnel, and significantly simplifying the screening procedures.

Reservations for fund consultation can be made from 9 a.m. on the 10th via the Gyeongnam Credit Guarantee Foundation website. After mobile phone identity verification, applicants select the relevant fund name to make a reservation. After receiving a guidance text message sent by the foundation, non-face-to-face (telephone) consultation is available.

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