Jungnang-gu Expands Special Credit Guarantee Loan Support to Alleviate Small Business Financial Difficulties

Expanded to 7.5 Billion KRW for 'Special Credit Guarantee Loan Support' Targeting Small Business Owners... Guarantee Ratio Raised to 100%... Seoul Credit Guarantee Foundation Provides Full Credit Guarantee for Loan Amount

[Asia Economy Reporter Park Jong-il] Jungnang-gu (Mayor Ryu Kyung-gi) is expanding the ‘Special Credit Guarantee Loan Support’ to assist small local businesses facing financial difficulties due to COVID-19.

The district has expanded the ‘Special Credit Guarantee Loan Support’ to alleviate the financial difficulties of small business owners who have trouble applying for loans through commercial banks due to lack of collateral.

Earlier, on the 16th, the district signed an agreement with the Credit Guarantee Foundation and contributed 500 million KRW to the Seoul Credit Guarantee Foundation, securing a guarantee fund worth 7.5 billion KRW, which is 15 times the contribution amount.

In particular, loans of up to 200 million KRW are available at a low interest rate of 1-2%, depending on sales volume. Borrowers only need to pay interest for the first year and can repay the principal in installments over 3 to 4 years, reducing the burden of the loan while enhancing stability.

Applications for the Special Credit Guarantee Loan Support are open to small enterprises and small business owners who have held a business registration certificate in the area for more than three months. The application process includes ▲pre-consultation and loan application/receipt at the Seoul Credit Guarantee Foundation Jungnang branch ▲submission of a recommendation letter from the Jungnang-gu Office Corporate Support Division to the Seoul Credit Guarantee Foundation ▲credit investigation and business site visit by the Seoul Credit Guarantee Foundation ▲notification of guarantee approval to the applicant company and bank based on the site visit and guarantee review results.

Ryu Kyung-gi, Mayor of Jungnang-gu, stated, “The Special Credit Guarantee Loan Support will help small business owners who are facing difficulties,” and added, “We will continue to contribute to resolving the financial difficulties of small business owners through various policies.”

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