500 Billion KRW Support for Business Stability of Low-Credit Small Business Owners
Small Business Owners with Credit Rating Below Grade 7
Up to 10 Million KRW Per Company
[Asia Economy Reporter Kim Daeseop] The Ministry of SMEs and Startups announced on the 4th that it will provide 50 billion KRW in policy funds to stabilize the management of low-credit small business owners who are struggling to secure financing amid the COVID-19 pandemic.
This small business policy fund will be available from the 5th through applications and registrations via the Small Enterprise and Market Service until the budget is exhausted. It is planned to support groups that better align with the purpose of the policy fund operation among small business owners with credit ratings of 7 or lower who find it difficult to obtain loans from primary financial institutions.
The loan conditions include a fixed interest rate of 2.9%, a loan period of 5 years (2 years grace period, 3 years repayment), and support of up to 10 million KRW per business. Eligible recipients include businesses owned by persons with disabilities, young small business owners (39 years old or younger), small business owners employing youth, and women-owned businesses. However, small business owners who have benefited from the first and second rounds of financial support programs for COVID-19 victims are excluded from this support.
To enhance user convenience and prevent the spread of COVID-19, applications and reviews will be conducted online in a non-face-to-face manner without accepting on-site applications at regional centers. After the review, small business owners approved for loans can visit one of the 66 regional centers nationwide to sign the loan agreement.
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Kwon Daesu, Director of Small Business Policy at the Ministry of SMEs and Startups, stated, "We hope this support will alleviate the management difficulties of vulnerable small business owners exacerbated by the spread of COVID-19," and added, "We will actively provide non-face-to-face loan application services in the future to lead and prepare for changes in the digital environment."
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