Gwangju Buk-gu, Special Guarantee Support Project Provides Great Help for Small Business Management Stability

[Asia Economy Honam Reporting Headquarters Reporter Kim Yukbong] Buk-gu, Gwangju Metropolitan City (District Mayor Moon In) announced on the 14th that since the start of the special guarantee support project for small business owners in 2012, it has contributed the largest amount this year of 250 million KRW, supporting a total of 4.35 billion KRW to 246 companies.

Amid the ongoing economic downturn caused by COVID-19, Buk-gu contributed 200 million KRW to a 3-no (no collateral, no interest, no guarantee fee) support project in cooperation with Gwangju Bank and Gwangju Credit Guarantee Foundation, which fully covers loan interest and guarantee fees for one year and supports 2% interest in the second year, providing special guarantees worth 3.75 billion KRW to 215 companies.

In particular, for the first time among local governments nationwide, Buk-gu contributed 50 million KRW to a 4-no (no collateral, no interest, no guarantee fee, exemption from early repayment fees) support project for young small business owners, supporting 600 million KRW to 31 companies.

According to the results of a special guarantee project survey conducted by Buk-gu from October to November, 52.1% of respondents said the loan was used for business operating funds, including ▲purchase of materials (30.4%) ▲payment of rent (21.7%) ▲low-interest refinancing and living expenses (20.6%).

Regarding sales improvement after the special guarantee loan, 55% of the food service industry, which was most affected by COVID-19, responded with ▲increase (45%) ▲no change (10%), indicating that the special guarantee support had a positive effect on sales improvement and business stability.

Mayor Moon In of Buk-gu said, “As local small business owners are going through a difficult time due to COVID-19, we will continue to discover and promote support policies that provide practical help.”

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