Yeongdeungpo-gu to Support 5 Billion KRW in Loans for SMEs in First Half of Year... 1.5% Interest Rate

Base interest rate lowered to 1.5%... Ultra-low loan recovery interest rate of 0.8% applied... Up to 300 million KRW loan per company possible... Applications accepted from February 22 to March 5

[Asia Economy Reporter Park Jong-il] Yeongdeungpo-gu (District Mayor Chae Hyun-il) has launched a loan support program through the Small and Medium Enterprise Development Fund to assist small business owners and SMEs facing economic difficulties due to COVID-19.

The district announced plans to provide loan support worth 5 billion KRW in the first half of the year to help local SMEs and small business owners affected by the spread of the novel coronavirus.

The Yeongdeungpo-gu Small and Medium Enterprise Development Fund allows applications for up to 300 million KRW per company and can be used for working capital, facility funds, and technology development funds for SMEs and small business owners.

Eligible applicants are SMEs and small business owners with business registration and workplaces located within Yeongdeungpo-gu.

▲ Priority is given to businesses registered as factories within the district ▲ businesses registered with a business license and factory registration within Seoul Metropolitan City ▲ and companies residing in the Yeongdeungpo-gu Startup Support Center. However, as of the announcement date of the support plan, those currently receiving and repaying loans or operating in industries such as luxury, entertainment, nightlife, finance, insurance, real estate, and pension businesses are excluded.

Starting this year, the district has lowered the basic loan interest rate from 1.8% per annum to 1.5% per annum.

Additionally, from April to December, a fixed interest rate of 0.8% per annum will be applied to the 2021 interest (loan recovery rate) to help small business owners economically impacted by the pandemic secure funds at low interest rates.

Companies wishing to apply for the Small and Medium Enterprise Development Fund loan can visit the district’s Job and Economy Division from February 22 to March 5 to submit their applications.

The district will make the final decision on the selection of recipients and loan support amounts after review by the Yeongdeungpo-gu Small and Medium Enterprise Development Fund Management Committee.

As of January this year, 131 companies have received loans through the district’s Small and Medium Enterprise Development Fund, with a total loan amount of 10.573 billion KRW provided.

The district plans to thoroughly manage the fund by conducting surveys on the use of funds in the first and second halves of the year to verify appropriateness, and will require companies that have closed, suspended operations, or relocated outside the district to repay the support funds immediately.

Chae Hyun-il, Mayor of Yeongdeungpo-gu, stated, “We deeply empathize with the difficulties faced by local companies and small business owners struggling to maintain operations due to the prolonged COVID-19 pandemic,” adding, “We will do our best to prepare and implement swift countermeasures to minimize the damage.”

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