Sancheong-gun Provides Largest Provincial Support for Mid-sized Business Development Loan Interest Subsidies

Support of 7 Billion KRW in Funds for First Half of Year, Applications Open from 19th
Secondary Interest Subsidy 3.5%, Actual Corporate Burden Interest Around 1%

Scenic View of Geumseo Agricultural and Industrial Complex in Sancheong-gun (Photo by Sancheong-gun)

[Asia Economy Yeongnam Reporting Headquarters Reporter Choi Soon-kyung] Sancheong-gun, Gyeongnam announced on the 15th that it will provide 7 billion KRW worth of mid-sized business development funds in the first half of the year to stabilize the management of small and medium-sized enterprises (SMEs) and small business owners struggling due to the novel coronavirus infection (COVID-19).

From the 19th until the planned amount is exhausted, mid-sized business development funds can be applied for at four financial institutions that have signed agreements with the county.

The county supports 3.5% of the interest on the loan (interest subsidy), reducing the interest burden on small business owners, which is the highest level among local governments in the province.

The actual interest rate borne by companies is around 0 to 1% (varies depending on collateral and credit rating of each company), and the county will provide the interest subsidy for five years.

The loan limit is up to 300 million KRW for manufacturing businesses and up to 50 million KRW for other industries (small business owners), with a two-year grace period and three-year equal repayment terms.

The support targets are SMEs and small business owners with their main business locations in the county.

A county official said, “The management environment for SMEs and small business owners is more difficult than ever due to the prolonged COVID-19 pandemic,” adding, “We will do our best to provide practical help in resolving the financial difficulties of small business owners through prompt loan support.”

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