Seongbuk-gu Provides 1.9 Billion KRW Loan Support from Small Business Development Fund

From September 21 to October 8, Seongbuk-gu Fund Loan Applications and Reception for Small and Medium Enterprises and Small Business Owners... Commercial Bank Financial Consultation Support for COVID-19 Impacted Areas (Jangwi, Seokgwan, Wolgok)

[Asia Economy Reporter Park Jong-il] Seongbuk-gu (Mayor Lee Seung-ro) is launching the '5th Small and Medium Enterprise (SME) Development Fund Loan and Special Guarantee Support' to stabilize the management of SMEs and small business owners facing financial difficulties due to the impact of the novel coronavirus disease (COVID-19).

The district announced that out of the total fund support scale of 4 billion KRW this year, 2.1 billion KRW will be provided in the first half, and 1.9 billion KRW will be supported in the second half.

The support targets are SMEs and small business owners who have a business place in Seongbuk-gu, have been registered for more than three months, and are currently operating. Among these, companies eligible for collateral setting according to Woori Bank loan terms or those able to issue guarantees from the Seoul Credit Guarantee Foundation are eligible. However, businesses such as pubs, restaurants with exclusive areas over 330㎡, real estate, finance and insurance, lodging, liquor wholesale, precious metals and game centers, and luxury or speculative industries are excluded.

Loans up to 100 million KRW are available when providing collateral (real estate, etc.), and up to 50 million KRW for credit guarantee loans, supporting facility funds, operating funds, and technology development funds.

The loan interest rate is a low 1.5% per annum, with repayment conditions of a 1-year grace period followed by 3 years of equal installment repayments.

The application period is from September 21 to October 8. Applicants can download the application form from the Seongbuk-gu Office website → District News → Notices, and prepare the loan application, business plan, business registration certificate, and financial statements for the past three years, then visit the 8th floor Job Economy Division of Seongbuk-gu Office to apply in person. However, before applying, applicants must confirm the available loan amount through prior consultation at Woori Bank Seongbuk-gu Office Branch or Seoul Credit Guarantee Foundation Seongbuk Branch and then indicate the loan amount on the application form.

Seongbuk-gu plans to provide not only SME Development Fund loan support but also a total of 4.6 billion KRW in special guarantees for low-credit small enterprises and small business owners who have difficulty obtaining credit loans due to sharp sales declines. To enhance convenience for small business owners applying for special guarantees, the Seoul Credit Guarantee Foundation has simplified the recommendation letter application process to allow one-time visits and one-stop guarantee services.

Meanwhile, due to the concentrated damage from COVID-19 in the Jangwi-dong, Seokgwan-dong, and Wolgok-dong areas of Seongbuk-gu, commercial banks (Woori, Shinhan, Kookmin, Hana Bank) will operate a 'dedicated counter' in collaboration with the Seoul Credit Guarantee Foundation from September 21 to October 8 for three weeks to provide financial counseling for small business owners facing financial difficulties. Various types of loans and guarantee consultations will be available, expected to be of great help to small business owners in the area.

The dedicated counters will be operated at Woori Bank (Jongam-dong, Jangwi-dong branches), Shinhan Bank (Jangwi-dong branch), Hana Bank (Wolgok-dong, Jangwi-dong branches), and Kookmin Bank (Seokgwan-dong branch).

Mayor Lee Seung-ro stated, “This 5th Seongbuk-gu SME Development Fund Loan and Special Guarantee Support is a measure prepared to respond to the management crisis of small business owners and strengthen the social safety net. I hope it will be of some help to small business owners throughout Seongbuk-gu, including the Jangwi, Seokgwan, and Wolgok-dong areas struggling due to the spread of COVID-19.”

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