Guro-gu Lowers Interest Rates on Loans for Food Sanitation Businesses

Amendment of Food Promotion Fund Ordinance Enforcement Rules to Support District Food Hygiene Businesses...For Hygiene Facility Improvement, Business Premises Repair and Renovation, Installation of Business Machinery and Equipment, etc.

[Asia Economy Reporter Park Jong-il] Guro-gu (Mayor Lee Seong) is revising the Food Promotion Fund Ordinance Enforcement Rules to provide financial support to food hygiene businesses struggling due to COVID-19.

On the 16th, Guro-gu announced the legislative notice of the “Amendment to the Food Promotion Fund Ordinance Enforcement Rules,” which includes lowering the interest rate and extending the repayment period compared to before.

The “Food Promotion Fund Loan Support” project is a system that loans funds required for improving hygiene management facilities, repairing and renovating business sites of food hygiene businesses. It is divided into development funds and facility improvement funds.

“Development funds” are funds used for improving and operating hygiene management facilities and target model restaurants for loans.

The loan limit is 50 million KRW.

Through the amendment of the enforcement rules, Guro-gu changes the annual interest rate from the original 2% to 1.5%. The repayment period is also changed from 1 year grace period with 2 years equal installments to 2 years grace period with 3 years equal installments.

“Facility improvement funds” are funds used for repairing and renovating business sites, installing and maintaining machinery and equipment necessary for business, aiming to improve hygiene levels.

Guro-gu eases the loan conditions by support target as follows: ▲General, rest, bakery, and consigned catering businesses: annual interest rate 1.5%, limit 100 million KRW, 2 years grace period with 3 years equal installments (previously annual interest rate 2%, 1 year grace period with 3 years equal installments) ▲Food manufacturing businesses: annual interest rate 1.5%, limit 50 million KRW, 3 years grace period with 5 years equal installments (previously annual interest rate 2%, 3 years grace period with 5 years equal installments) ▲Food hygiene businesses improving restrooms: annual interest rate 1%, limit 20 million KRW, 2 years grace period with 3 years equal installments (previously annual interest rate 1%, 1 year grace period with 2 years equal installments).

Guro-gu plans to accept loan applications at the end of May when the amendment to the ordinance enforcement rules is finalized.

The loan scale is 250 million KRW, and if there are many applicants, the scale will be expanded through supplementary budgeting.

A Guro-gu official said, “We will thoroughly complete the related administrative procedures for food hygiene businesses facing difficulties,” and added, “We will continue to prepare various support policies for the early recovery of the local economy.”

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