Songpa-gu, Seoul Credit Guarantee Foundation Special Contribution: 6 Billion Won Unsecured Loans for Small Business Owners

Songpa-gu & Hana Bank, 400 Million KRW Special Contribution to Seoul Credit Guarantee Foundation... Up to 50 Million KRW Loan Support for Small Businesses and Small Merchants

[Asia Economy Reporter Park Jong-il] Songpa-gu (Mayor Park Seong-su) is launching an unsecured loan support program worth a total of 6 billion KRW through the Seoul Credit Guarantee Foundation to help small business owners struggling due to COVID-19.

To this end, on September 25, the district signed an agreement with Hana Bank to make a special contribution of 200 million KRW each, totaling 400 million KRW, to the Seoul Credit Guarantee Foundation on a 1:1 matching basis.

Accordingly, the guarantee scale has expanded to 15 times the contribution amount, securing a total of 6 billion KRW to be used for unsecured loan support. From mid-October, small enterprises and small business owners recommended by the district will receive credit guarantees from the Seoul Credit Guarantee Foundation, and Hana Bank will provide necessary funds at long-term low interest rates.

The guarantee ratio is 100%, providing full guarantee, and the guarantee fee rate is 0.8% per annum, lower than the general guarantee fee rate of 1.0%.

The loan interest rate is around 2.0% per annum, and when linked with Seoul city support funds, loans can be obtained at an interest rate 0.8 to 1.3 percentage points lower. The maximum loan amount per business is up to 50 million KRW, with a one-year grace period followed by 3 to 4 years of equal installment repayments.

For example, if 50 million KRW is needed for operating funds, the loan can be obtained at a relatively low cost with a guarantee fee of 400,000 KRW and a monthly interest of about 43,000 KRW.

Any small enterprise or small business owner with a business location in Songpa-gu can apply. However, entertainment businesses and luxury leisure businesses may be excluded from support.

Required application documents include ▲ one copy of value-added tax return data ▲ copies of ID card, business registration certificate, and lease contracts for business premises and residence ▲ national and local tax payment certificates ▲ income certificate and financial transaction confirmation, among others.

For inquiries related to guarantee support, contact the Seoul Credit Guarantee Foundation or Hana Bank Garak Financial Center Branch.

Park Seong-su, Mayor of Songpa-gu, stated, “I hope this special contribution will bring some hope to small business owners facing difficulties,” and added, “We will continue to implement practical support measures for small business owners to contribute to the local economy.”

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