Yangju City Expands Special Guarantee Support Limits for SMEs This Year
[Asia Economy Reporter Ra Young-cheol] Yangju City in Gyeonggi Province has significantly expanded the special guarantee support limit, considering the urgent funding needs and difficulties faced by local small and medium-sized enterprises (SMEs) and small business owners due to the prolonged COVID-19 pandemic.
A special guarantee is a guarantee system in which a local government allocates a budget to a credit guarantee foundation to support local SMEs and small business owners who have difficulty obtaining loans from commercial banks due to lack of credit and collateral capacity, by applying more relaxed screening criteria than general guarantees.
According to the city on the 1st, the total amount of special guarantees this year is 17 billion KRW. The special guarantee limit has been expanded from a maximum of 200 million KRW to 300 million KRW per manufacturing SME, and from a maximum of 100 million KRW to 150 million KRW for non-manufacturing SMEs. Small business owners can also receive up to 50 million KRW.
Compared to last year’s main budget of 1.1 billion KRW, including 500 million KRW for SMEs and 600 million KRW for small business owners, the city has increased its contribution to the Gyeonggi Credit Guarantee Foundation’s special guarantee fund by 270 million KRW to a total of 1.37 billion KRW, including 700 million KRW for SMEs and 670 million KRW for small business owners.
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SMEs defined under Article 2 of the Framework Act on Small and Medium Enterprises that have registered a factory and business in Yangju City and have been operating continuously for more than one year as of the application date, or small business owners residing in Yangju City who have registered a business locally and have been operating continuously for more than two months, can receive support through screening by the Gyeonggi Credit Guarantee Foundation and recommendation by Yangju City.
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