Muju-gun Expands Special Guarantee Support for Small Business Owners

[Asia Economy Honam Reporting Headquarters Reporter Go Dallyoung] Muju-gun, Jeonbuk announced on the 12th that it has expanded the target and scale of special guarantee support to help small business owners overcome economic difficulties caused by COVID-19.

The target is small business owners with a credit rating of 3 or lower who have been operating a business in the jurisdiction for more than three months. The special guarantee support is carried out through a procedure where, after consultation with the Jeonbuk Credit Guarantee Foundation, a recommendation letter is issued by Muju-gun and the loan is obtained through the relevant financial institution.

The county supports loans up to 30 million KRW per business and an interest rate of 5%, and borrowers can repay with a one-year grace period followed by four years of installment payments or five years of equal principal payments.

If the loan funds are used for purposes other than intended after the loan execution, or if the business is temporarily closed or shut down, failing to fulfill obligations for business performance, the interest support will be suspended or reclaimed.

Also, businesses restricted from credit guarantees, financial and insurance industries, luxury and entertainment industries, temporarily closed or shut down businesses, and those who have received government or Jeonbuk provincial small business policy funds are excluded from support.

County Governor Hwang Inhong said, “Until now, support was limited to those with credit ratings of 5 or lower, restricting small business owners from receiving benefits. Since the related ordinance was promulgated on the 1st and support started on the 11th, it is expected to provide some relief to small business owners struggling due to COVID-19.”

The special guarantee support for small business owners began in 2012 when Muju-gun, Jeonbuk Credit Guarantee Foundation, NH Nonghyup Bank Muju Branch, and Jeonbuk Bank signed a business agreement to provide loans and interest support to small business owners facing difficulties in obtaining loans. As of the end of April this year, 19 people have been supported with 420 million KRW.

Meanwhile, the Jeonbuk Credit Guarantee Foundation Muju Branch Office, which was located on the second floor of the county office civil service center and operated every Friday, is currently suspended due to COVID-19. Until consultations resume, inquiries related to special guarantee support can be made to the Regional Economy Team of the Industrial Economy Division at Muju County Office.

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