Gwangju Bank and Gwangju Seo-gu Sign Business Agreement on 'Special Guarantee Loans for Small Business Owners'

[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] Gwangju Bank (President Song Jong-wook) announced on the 31st that it has signed a "Special Guarantee Loan Interest Subsidy Business Agreement for Small Business Owners" with Seo-gu, Gwangju Metropolitan City to support overcoming the local economic recession and the crisis of small business owners in the region caused by the spread of COVID-19.

As Seo-gu, Gwangju Metropolitan City, has taken early special guarantee support measures for small business owners in the district to minimize management damage such as sales decline due to the spread of COVID-19, Seo-gu Office and Gwangju Bank decided to provide a 2% interest subsidy for one year and a preferential interest rate of up to 0.3 percentage points (p) to local small business owners.

As a result, small business owners are expected to receive funds at a low interest rate in the 1% range for one year and reduce the burden of early repayment interest through exemption from early repayment fees.

The eligible companies are small business owners operating businesses located in Seo-gu, Gwangju Metropolitan City who meet certain requirements (manufacturing and construction businesses with fewer than 10 regular employees / wholesale, retail, dining, service industries with fewer than 5 regular employees) and are recommended by Gwangju Bank or Gwangju Credit Guarantee Foundation. Support is provided up to 20 million KRW per company, and the loan period is up to 5 years.

Song Jong-wook, president of Gwangju Bank, said, "I hope to be a support to small enterprises and small business owners in the region who are struggling due to management difficulties and to revitalize the local economy. We will continue to prepare various financial support measures for local residents as the representative bank of Gwangju and Jeonnam and achieve mutual development with the region."

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