Jeonnam Province Provides Loan Support for Small and Medium Enterprises and Small Business Owners' Development Funds

[Muan=Asia Economy Honam Reporting Headquarters, Reporter Yoon Jamin] Jeonnam Province is recruiting recipients for funds to support the growth of small and medium-sized enterprises (SMEs) and small business owners to stabilize management and boost economic vitality.

According to Jeonnam Province on the 14th, the total fund size this year is 450 billion KRW. Of this, 380 billion KRW is allocated for management stabilization funds that can be used for rent, labor costs, research and development, etc., and 70 billion KRW is designated as facility funds for facility investments such as factory expansion or renovation and machinery equipment.

SMEs can apply through the Jeollanam-do Small and Medium Business Promotion Agency, and small business owners can apply through the Jeonnam Credit Guarantee Foundation. Applications are accepted until the funds are exhausted.

The management stabilization fund is a project that compensates part of the interest incurred on bank loans.

SMEs can receive support at 2.0~2.5% for a 2-year grace period with lump-sum repayment, and 1.1~1.4% for a 2-year grace period with 2-year installment repayment. Small business owners can receive 2.0% for a 2-year grace period with lump-sum repayment, and 1.1% for a 2-year grace period with 2-year installment repayment.

The loan limit is up to 500 million KRW for SMEs and up to 200 million KRW for small business owners. Separate funds will be allocated to employment and industrial crisis areas, shipbuilding industries, and smart factories for support.

Facility funds will be provided at a low interest rate of 2.0~2.25% per annum as of the first quarter of this year, up to a maximum of 2 billion KRW per company, helping reduce financial costs and serving as a foundation to drive corporate growth.

In addition, the province plans to ease the loan burden on small business owners by allowing a grace period of up to 6 months for repayment periods of businesses currently repaying existing loans in installments, and extending the maturity up to 1 year for businesses repaying in lump sum.

Joo Soon-seon, Director of the Economic Energy Bureau of Jeonnam Province, said, “We hope that the growth funds will be provided in a timely manner to SMEs and small business owners who have suffered difficulties due to COVID-19, alleviating their financial difficulties,” and added, “We will prepare various support measures so that companies can recover and continue to grow.”

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