Seongbuk-gu Provides 2 Billion KRW Low-Interest Loans at 1.2% for SME Development Fund and Repayment Deferral

Loan Application and Reception for Seongbuk-gu Fund from the 3rd to 24th... Interest Rate Reduction (2021 Rate: 1.2%) to Ease Interest Burden on Small Business Owners

[Asia Economy Reporter Jongil Park] Seongbuk-gu (Mayor Lee Seung-ro) will provide loans from the Small and Medium Enterprise Development Fund worth 2 billion KRW to alleviate financial difficulties faced by local small business owners and SMEs struggling due to the spread of COVID-19.

The Small and Medium Enterprise Development Fund loans are intended for facility funds, working capital, and technology development funds. For each company, secured loans can be applied for up to 100 million KRW, and unsecured loans up to 50 million KRW.

The loan interest rate is supported at an annual 1.2%, which has been further reduced from last year to ease the interest burden on small business owners and SMEs. The repayment terms are a 1-year grace period followed by 3 years of equal principal installments.

The support targets are SMEs and small business owners who have a business location in Seongbuk-gu and have been operating for more than 3 months with business registration. However, companies currently repaying or within the repayment period of the Seongbuk-gu Small and Medium Enterprise Development Fund loans are excluded. Also, businesses such as pubs, restaurants with exclusive areas over 330㎡, real estate, finance and insurance, lodging, liquor wholesale, precious metals and game rooms, and luxury or speculative industries are not eligible to apply.

Companies wishing to apply for loans must first consult with financial institutions (Woori Bank Seongbuk-gu Office Branch and Seoul Credit Guarantee Foundation Seongbuk Branch) and confirm collateral appraisal value and credit rating before applying.

Announcements and application documents can be downloaded from the ‘Notices & Announcements’ section on the Seongbuk-gu Office website. Those wishing to apply should submit the application form and related documents to the Job and Economy Division on the 8th floor of Seongbuk-gu Office by the 24th of this month. Eligibility and loan amounts will be finally decided through deliberation by the Seongbuk-gu Small and Medium Enterprise Development Fund Operation Review Committee.

Meanwhile, Seongbuk-gu will also support principal repayment deferrals along with the Small and Medium Enterprise Development Fund loan support plan. SMEs and small business owners who have suffered direct or indirect damage from COVID-19 and have no defaults such as principal and interest arrears, capital erosion, or business closure can apply for deferral.

Even if there were arrears last year, those who have cleared all arrears with all financial institutions as of the application date or those who temporarily closed after January are also eligible for support.

The deferral target is the installment principal repayment due between February 1 and August 20. Deferral applications can be made for up to 6 months, and deferred principal will be repaid in equal installments over the remaining period. Companies wishing to apply for deferral should visit the Woori Bank Seongbuk-gu Office Branch and submit the application by August 20.

Lee Seung-ro, Mayor of Seongbuk-gu, said, “Through this Small and Medium Enterprise Development Fund loan support and principal repayment deferral, we hope to help stabilize the management of many small businesses, small business owners, and SMEs in the region who are facing business difficulties. We will continue to implement support measures from various directions.”

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