Naju-si Supports 'Small Business Management Stabilization Fund' to Overcome COVID-19

[Asia Economy Honam Reporting Headquarters Reporter Kim Yukbong] Naju City, Jeollanam-do (Mayor Kang In-gyu) announced on the 12th that it held a ‘Secondary Interest Subsidy Support Business Agreement Ceremony’ with 14 financial institutions and the Jeonnam Credit Guarantee Foundation on the 11th at the City Hall Ihwa Room to support small business owners' management stabilization funds.

The ceremony was attended by Mayor Kang In-gyu, branch managers of NH Nonghyup Bank and other local financial institution representatives, branch managers of the Jeonnam Credit Guarantee Foundation, branch managers of the National Merchants Association, and merchant representatives, totaling 22 people.

This agreement was prepared as the city proposed the participation of local financial institutions in the small business owners' secondary interest subsidy support project.

Through this, 14 financial institutions will support loans to small business owners with the formation of 89 billion KRW in loan funds.

The Jeonnam Credit Guarantee Foundation will actively support application reception, screening, and issuance of guarantees to minimize inconvenience in loan applications and ensure prompt loans.

The city will support an annual interest rate of 3% within a limit of 50 million KRW per business for two years through the small business owners' secondary interest subsidy support project.

The secondary interest subsidy support targets small business owners registered and residing in the city; retail, food service, and service industries must have fewer than 5 employees, while manufacturing, construction, and transportation industries must have fewer than 10 employees.

Applications for secondary interest subsidy loans are accepted quarterly at branches of the Jeonnam Credit Guarantee Foundation, and after eligibility screening, the city decides on loan support, followed by loan execution at each financial institution.

Earlier, the city established a legal foundation by enacting the ‘Small Business Support Ordinance’ last month.

Also, it has allocated a budget of 100 million KRW for the secondary interest subsidy this year and plans to fully launch the project from next month.

Mayor Kang In-gyu said, “This project will bring relief like rain in a drought to small business owners,” and added, “We will gradually expand the budget annually so that more small business owners can receive secondary interest subsidy support.”

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