Yangcheon-gu Supports Small and Medium Enterprises with 2.5 Billion KRW Mid-Year Development Fund at 1.5% Annual Interest

Special Credit Guarantee Provided for SMEs and Small Business Owners with Insufficient Collateral... Loan Interest Rate 1.5% per Year, Repayment Terms: 2-Year Grace Period, 3-Year Equal Installments

[Asia Economy Reporter Park Jong-il] Yangcheon-gu (Mayor Kim Soo-young) is providing loans from the '2021 First Half Small and Medium Enterprise Development Fund' to revitalize small and medium-sized enterprises (SMEs) and small business owners dreaming of a new leap forward, and to support businesses facing management crises due to COVID-19.

Eligible applicants include ▲ manufacturers registered with factories in Yangcheon-gu ▲ companies with their main office in Yangcheon-gu and factories registered within the jurisdiction of Seoul Metropolitan City ▲ operators of knowledge service industries related to manufacturing ▲ small enterprises and small business owners ▲ wholesale and retail businesses, and other industries (excluding some sectors).

The support scale for the first half of this year is 2.5 billion KRW, with loan conditions of an annual interest rate of 1.5%, a 2-year grace period, and a 3-year equal installment repayment plan. The loan limit is up to 300 million KRW per manufacturing business and up to 80 million KRW for other wholesale and retail businesses.

The funds must be used for facility funds, operating funds, technology development funds, etc. Businesses wishing to apply can download the loan application form and business plan form from the announcements and public notices section on the Yangcheon-gu Office website and submit them along with the required documents to the Job and Economy Division of Yangcheon-gu Office from January 15 to February 9.

Loan recipients of the Small and Medium Enterprise Development Fund will be finalized after review by the Fund Management Committee and can receive loans through Woori Bank Yangcheon Branch starting in March.

Additionally, small business owners in the area who need emergency funds but face difficulties applying for loans due to insufficient collateral can use the Special Credit Guarantee System.

When Yangcheon-gu recommends SMEs and small business owners requiring guarantees to the Seoul Credit Guarantee Foundation, the foundation guarantees the companies so they can receive financial support at low interest rates.

Kim Soo-young, Mayor of Yangcheon-gu, said, “Since SMEs, the backbone of our economy, need an environment to grow and make a leap forward, we will continuously discover and promote various SME support policies.”

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