Gwangju Buk-gu Supports Small Business Owners with '3-No Special Loan' Program

[Asia Economy Honam Reporting Headquarters Reporter Kim Yukbong] Buk-gu, Gwangju Metropolitan City (District Mayor Moon In) announced on the 23rd that it will implement a ‘3-No (No Collateral, No Interest, No Guarantee Fee) Special Loan’ in collaboration with Gwangju Bank and Gwangju Credit Guarantee Foundation.

This 3-No special loan support project was prepared to support the business stability of small business owners struggling due to COVID-19.

The eligibility for applying for the special loan is small business owners with workplaces in Buk-gu, and loans of up to 20 million KRW can be obtained through all branches of Gwangju Bank.

The loan conditions allow installment repayment over 5 years without collateral, guaranteed by the Gwangju Credit Guarantee Foundation.

Buk-gu will bear the loan interest and guarantee fee of 0.7% for one year on behalf of the small business owners, and from the second year, it will support the interest rate difference of 2% per annum.

The 3-No special loan is retroactively applied to small business owners who have previously received special guarantee loans under the ‘Buk-gu Small Business Special Guarantee Agreement.’

Moon In, Mayor of Buk-gu, said, “This is the first case nationwide where a local government fully covers interest and guarantee fees,” adding, “We hope this will be of some help to small merchants who need operating funds such as wages, rent, and utility bills.”

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