Daegu City Provides 1.055 Trillion Won Loan to SMEs and Small Business Owners... "Maximizing Policy Fund Expansion"

Applications Accepted from the 11th at Daegu Credit Guarantee Foundation and Branches of Korea Technology Finance Corporation and Korea Credit Guarantee Fund

The photo shows Lee Nak-yeon, the leader of the Democratic Party of Korea, and Kwon Young-jin, the mayor of Daegu, posing for a commemorative photo at the policy meeting between the Democratic Party of Korea and Daegu City held at the Daegu City Hall annex on November 4, 2020. [Image source=Yonhap News]

[Asia Economy Yeongnam Reporting Headquarters Reporter Park Dong-wook] Daegu City announced on the 10th that it will provide operating funds to secure liquidity for small and medium-sized enterprises (SMEs), mid-sized companies, and small business owners in the region who are experiencing financial difficulties due to the prolonged COVID-19 pandemic.

This support is implemented mainly for SME working capital and is divided into mid-sized companies, startups, or competitiveness enhancement funds (facility funds).

Through a total of 1 trillion KRW in SME business stabilization funds (working capital), operating funds and partial loan interest (1.3~2.2%) will be supported for one year for local SMEs and small business owners facing management difficulties.

This year, the exclusion criteria for loan recommendations for excellent SMEs have been abolished, and for export companies, the performance period has been relaxed from within one year to within the last two years, allowing regional companies to receive support more equally.

In addition, to support mid-sized companies, 150 billion KRW will be maintained and allocated, and considering the economic downturn and the prolonged COVID-19 situation, the interest subsidy rate for cooperative funds with commercial banks will be maintained at the current rate of 1.3~2.2% in line with the low-interest rate trend.

The startup and competitiveness enhancement funds (facility funds), supported at a scale of 55 billion KRW this year, will maintain low interest rates (1.95%~2.45%), a repayment period of 10 years (3 years grace period, 7 years equal installment repayment), and a loan limit of 2 billion KRW to alleviate the financial burden of corporate facility investments.

Hong Eui-rak, Deputy Mayor for Economic Affairs of Daegu City, emphasized, "Since this is a difficult time for everyone, Daegu City will proactively expand policy funds as early as possible to the maximum extent, playing a strong support role for small business owners and SMEs in the region, and will seek various support measures to revitalize the local economy."

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