Gwangyang City Provides Additional Loans to Support SMEs Overcoming COVID-19 Financial Difficulties

[Asia Economy Honam Reporting Headquarters Reporter Lee Hyung-kwon] Gwangyang City, Jeonnam announced on the 17th that it will provide additional support for the secondary interest subsidy fund to help small and medium-sized enterprises (SMEs) struggling with management difficulties due to COVID-19 maintain stable operations.

The city had allocated a budget of 900 million KRW this year to support the management stability of SMEs, but due to the direct and indirect damage caused by the spread of COVID-19, it has additionally allocated and will support a budget of over 200 million KRW to resolve the management difficulties of affected SMEs.

Eligible applicants are companies that have their main office and business site in Gwangyang City and have been operating in manufacturing, transportation and warehousing, information and communication, waste treatment services, etc., for more than two years.

The support limit is up to 300 million KRW per company, and 3% of the loan amount (4% for preferential companies such as women-owned businesses) can be received as a secondary interest subsidy.

Loan repayment is a lump-sum repayment after a 2-year grace period and can be extended once. Loans can be obtained through 15 branches of 7 financial institutions that have agreements with the city.

Companies wishing to receive funding support must submit a loan application including a business plan and financial statements for the past two years to the city.

Jung Hyun-bok, mayor of Gwangyang City, said, “We hope this will help stabilize the management and alleviate financial difficulties of local SMEs, including export-import companies facing financial hardships due to COVID-19,” and added, “We will continue to seek various support methods to stabilize SME management.”

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