Nowon-gu Supports Small Business Owners with 15 Billion KRW Unsecured Loans to Overcome COVID-19

150 Billion Won Market, 30 Times Increase from Last Year, Up to 30 Million Won Loan per Company... Around 2.0% Annual Interest Rate, 1-Year Grace Period with 4-Year Equal Installments... District Supports Interest and Guarantee Fees for 1 Year

[Asia Economy Reporter Park Jong-il] Nowon-gu (District Mayor Oh Seung-rok) is promoting a special credit guarantee loan system for small businesses and small merchants to support those struggling due to the prolonged COVID-19 pandemic.

The loan amount supported this time is 15 billion KRW, which is 30 times the amount from last year.

To secure the guarantee loan limit, the district contributed 1 billion KRW, which is 20 times last year's amount, to the Seoul Credit Guarantee Foundation.

Also, this year, the district will support interest and guarantee fees for one year to help alleviate the economic difficulties of small merchants.

The loan limit is up to 30 million KRW per business, and it is expected that at least 500 small merchants will benefit.

The interest rate is around 2.0% per annum, with a condition of a 1-year grace period followed by 4 years of equal installment repayments.

The support target is small businesses and small merchants whose business locations are in Nowon-gu, who have operated their business for more than 6 months as of August 19, 2020 (opened before March 19, 2020), and have income (sales). However, loans are restricted for unhealthy industries such as entertainment establishments, gambling, pleasure, speculation, etc. Also, those who have already received loan support from the Seoul Credit Guarantee Foundation and are repaying or have poor credit ratings may be subject to loan adjustment or exclusion from loan eligibility.

Required documents include ▲ one copy of value-added tax report (tax base report or tax base certificate) ▲ copies of ID card, business registration certificate, lease contract copies for business place and residence ▲ resident registration certificate, national and local tax payment certificates ▲ income certificate (2019), financial transaction confirmation (loan transaction details over 10 million KRW), etc.

The application period is from the 19th of this month to October 30. Applications can be submitted at the Kookmin Bank Nowon-gu Office branch. Expecting a surge of applicants early in the application period, the district will operate a temporary counter on the first floor of the district office main building from the 19th to the 28th. Since consultation reservation is mandatory before submission, applicants are strongly advised to receive guidance on the necessary documents before visiting. Submitted applications will undergo review by the Seoul Credit Guarantee Foundation, and loan support is scheduled to begin from mid-September.

For more details, inquiries can be made to the district office’s Job and Economy Division via the district website.

In the first half of 2020, the district supported 2.433 billion KRW for 20 companies through the Small and Medium Enterprise Development Fund loan support, and plans to support 3.3 billion KRW in the second half as well.

District Mayor Oh Seung-rok said, “I hope this will help small businesses and small merchants who are struggling due to COVID-19 and have difficulties securing funds due to lack of collateral,” adding, “We will continue to strive to revitalize the local economy through various policies including support for small merchants.”

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