Seongdong-gu Provides Additional 5.2 Billion Won Loan Support for Small Businesses and Small Merchants

From the 27th until funds are exhausted... Loan limit increased to 20 million won, companies receiving government or Seoul city loan support also eligible for loans

[Asia Economy Reporter Park Jong-il] Seongdong-gu (Mayor Jung Won-oh) will provide additional loan support from the 27th to stabilize the management and minimize damage for small businesses, small merchants, and self-employed individuals affected by the prolonged COVID-19 pandemic.

The district decided to add 2.2 billion KRW last month to the previously allocated budget, making a total of 5.2 billion KRW in additional loan support.

This is the second additional support following the 3.1 billion KRW loan support provided from February to early July.

This support raises the loan limit from the previous 10 million KRW to 20 million KRW. Considering that companies that have already received government or Seoul city funds or loan support related to COVID-19 were unable to get guarantees from the Seoul Credit Guarantee Foundation and thus had difficulty obtaining loans, the support method has been expanded to allow loans if only real estate collateral is provided to the bank.

The loan repayment condition is a 1-year grace period followed by equal installments over 3 years, with the district fully covering the interest payments during the initial 1-year grace period.

The support targets small businesses and small merchants, including self-employed individuals, who have business sites or factories in Seongdong-gu. Basically, the loan collateral is set by issuing a special credit guarantee certificate from the Seoul Credit Guarantee Foundation, and the loan interest rate is 1.7%. The district covers the guarantee issuance fee.

The business must be a sole proprietorship with a business period of at least one year from the establishment date on the business registration certificate to the date of credit guarantee application. Businesses that are temporarily closed or shut down, those unable to obtain loans from financial institutions (such as restricted industries), or those with a history of receiving small business development fund loans from the district within the last 4 years are excluded.

Applications are accepted from the 27th until funds are exhausted. Companies wishing to apply for loans should refer to the notices section on the Seongdong-gu Office website, bring the loan application and required documents, visit Shinhan Bank Seongdong-gu Branch or any Hana Bank branch in Seongdong-gu for preliminary consultation, and then apply in person at the Seongdong-gu Office Regional Economy Division.

Selection will be decided through deliberation by the operating committee, and loan execution and fund receipt are expected to be possible by mid-August.

Jung Won-oh, Mayor of Seongdong-gu, said, “We decided to provide additional loan support to minimize the damage to small businesses and small merchants who are suffering tremendous difficulties due to the economic downturn and operational challenges caused by this crisis and to support more companies in the region.” He added, “We hope this will be a seed of hope that can help even a little during these difficult times.”

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