Eunpyeong-gu Secures 5.6 Billion KRW from SME Development Fund to Support Small Business Owners

Promotion of Amendment to 'Eunpyeong-gu Fund Management Ordinance Enforcement Rules' for Supporting Accommodation and Food Service Industry

[Asia Economy Reporter Jongil Park] Eunpyeong-gu (Mayor Kim Mi-kyung) announced that it has increased the loan scale of the Small and Medium Business Development Fund by 5.6 billion KRW to provide emergency operating funds to small and medium-sized enterprises and small business owners who have been pushed into crisis due to COVID-19.

By securing 5 billion KRW through supplementary budget and 600 million KRW by terminating regular deposits of the fund, the total amount was increased from the existing 2.5 billion KRW to 8.1 billion KRW.

A temporary interest exemption will also be implemented for both existing and new borrowers.

The exemption period covers interest from April 1, 2020, to December 31, 2020, and from 2021, the fixed interest rate of 1.5% will be applied as before.

In addition, various measures will be promoted to maximize the loan support effect of the fund.

The loan support limit per company has been lowered and the number of times support can be received is limited to allow more companies to benefit. Companies operating for more than one year have a loan limit of 100 million KRW, and those operating for less than one year have a limit of 50 million KRW. Companies that have received loan support from the Small and Medium Business Development Fund two or more times within the last four years are not eligible to apply.

Although the lodging and restaurant industries have been directly hit by COVID-19, they have not received loan support. To provide emergency support for these two industries, Eunpyeong-gu is pushing to revise the fund management ordinance enforcement rules.

The amendment includes these two industries as eligible for support and will be applied temporarily only for applications received this year. The amendment is scheduled to be implemented in early May, and applications will be accepted through a public announcement thereafter. Collateral is required when applying for loans, and industries such as pubs, tobacco and liquor wholesale, real estate, finance, and insurance are not eligible to apply.

For detailed information such as eligibility requirements, loan conditions, and required documents, please check the announcement on the Eunpyeong-gu Office website. For inquiries by phone, contact the Small Business Team of the Job and Economy Division at Eunpyeong-gu Office.

An official from Eunpyeong-gu stated, “Applications for additional loan funds will be announced in early May, so we ask for your great interest.”

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