Eunpyeong-gu Small and Medium Business Development Fund Loan Support

[Asia Economy Reporter Jongil Park] Eunpyeong-gu (Mayor Kim Mi-kyung) will provide interest-free support through the ‘2020 Eunpyeong-gu Small and Medium Enterprise Development Fund’ to stabilize management and alleviate financial difficulties for small and medium-sized enterprises and small business owners struggling due to COVID-19.

Temporary interest exemption will also be implemented for both existing and new borrowers.

The exemption period covers interest from April 1 to December 31. From 2021, the previous fixed interest rate of 1.5% will be applied. Additionally, lodging and food service businesses, which were previously excluded from loan support, will be temporarily eligible for this year’s applications through amendments to the Eunpyeong-gu Fund Management Ordinance Enforcement Rules.

Furthermore, the loan support limit per company has been lowered and the number of times support can be received has been restricted to allow more companies to benefit.

Companies operating for more than one year have a loan limit of 100 million KRW, while those operating less than one year have a limit of 50 million KRW. (For lodging and food service businesses, the limit is 30 million KRW.) Companies that have received loan support from the Small and Medium Enterprise Development Fund two or more times within the past four years are not eligible to apply.

Applications can be submitted at any time until funds are exhausted, and loans are disbursed at the end of each month. Collateral is required, and businesses in sectors such as bars, tobacco and liquor wholesale, real estate, finance and insurance, and other industries promoting luxury and speculation are not eligible to apply, so please be cautious.

For detailed information on eligibility, loan conditions, and required documents, please refer to the announcement on the Eunpyeong-gu Office website.

Small businesses and small business owners (including food service businesses) lacking sufficient collateral can receive special credit guarantee support provided by the Small and Medium Enterprise Development Fund.

By using a credit guarantee certificate issued by the Seoul Credit Guarantee Foundation as collateral, loans can be obtained from banks. The guarantee limit is up to 30 million KRW per company, and in some cases, an additional 1.5% interest support can be provided. (1.5% interest is deducted from the market interest rate)

Companies wishing to apply should consult and apply at the Seoul Credit Guarantee Foundation Eunpyeong Branch.

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