SBC, Online Application for Small Business Policy Funds Begins

[Asia Economy Reporter Moon Hyewon] The Small Enterprise and Market Service announced on the 16th that it will provide low-interest policy funds at an interest rate in the 1% range to support small business owners struggling with financing due to the economic downturn.

The funds accepted for five days from the 16th to the 20th include specialized funds for small manufacturers, innovative small business funds, smart equipment introduction funds, exclusive funds for urban redevelopment project areas, and exclusive funds for social economy enterprises.

The specialized funds for small manufacturers are provided to small manufacturers engaged in manufacturing with fewer than 10 regular employees. As of the fourth quarter of this year, the variable interest rate is 1.97%, with an annual working capital limit of 100 million KRW per company and a facility fund limit of up to 500 million KRW.

The innovative small business funds are for small business owners selected for the Service’s ‘Innovative Small Business Development Project,’ with a variable interest rate of 1.57%, a working capital limit of 100 million KRW per company, and a facility fund limit of up to 500 million KRW.

The smart equipment introduction funds are provided to small manufacturers engaged in manufacturing who have introduced or plan to introduce smart equipment, with a variable interest rate of 1.57%, an annual working capital limit of 100 million KRW per company, and a facility fund limit of up to 500 million KRW per company.

The exclusive funds for urban redevelopment project areas are for small business owners experiencing management difficulties during maintenance processes such as reconstruction and redevelopment, with a variable interest rate of 1.97% and a working capital limit of up to 70 million KRW per company.

The exclusive funds for social economy enterprises are provided to cooperatives, (preliminary) social enterprises, village enterprises, self-support enterprises, and consumer cooperatives, with a variable interest rate of 1.77%, an annual working capital limit of 200 million KRW per company, and a facility fund limit of up to 1 billion KRW.

The Service has switched to a non-face-to-face online application method through its website without accepting on-site applications at regional centers to prevent the spread of COVID-19 and enhance user convenience.

Meanwhile, online applications are ongoing for the Service’s proxy loans such as general business stabilization funds and special youth employment funds for job creation. It is possible to apply for a policy fund eligibility confirmation certificate on the Service’s website, and once eligibility is confirmed, applicants can print the certificate online and visit the guarantee foundation or bank.

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