Gwangju Buk-gu Supports 3-Free Special Guarantee for Tenant Small Business Owners

[Asia Economy Honam Reporting Headquarters Reporter Kim Yukbong] Buk-gu, Gwangju Metropolitan City (District Mayor Moon In) announced on the 23rd that it will provide special guarantee loans with three no's (no collateral, no interest, no guarantee fee) to tenant small business owners suffering from business difficulties due to the prolonged COVID-19 pandemic.

According to a survey on small business owners' commercial districts conducted by Buk-gu last year, rent was found to be the biggest burden for small business owners.

Accordingly, this year, the 'Buk-gu Style Didimdol Special Guarantee' project will be implemented targeting tenant small business owners.

The support target is tenant small business owners with business locations in Buk-gu.

The loan conditions allow loans up to 20 million KRW depending on credit rating and sales amount, limited to business stabilization funds such as rent.

Loans can be obtained without collateral under the guarantee of the Gwangju Credit Guarantee Foundation and can be repaid in installments over five years.

Buk-gu will support the full interest for one year and the one-year guarantee fee (0.7%), and 2% interest in the second year.

Through this special guarantee project, if a small business owner borrows 20 million KRW at the average financial sector interest rate of 3.3%, it is expected that they will receive benefits of up to 800,000 KRW (including interest and guarantee fees) for one year.

The Buk-gu Style Didimdol Special Guarantee project will operate until the special guarantee funds are exhausted, and applications can be made at all branches of Gwangju Bank after making a reservation consultation on the Gwangju Credit Guarantee Foundation website.

Moon In, Mayor of Buk-gu, said, “We will continue to prepare more proactive and preemptive support measures so that local small business owners can carry out stable business activities amid the COVID-19 crisis.”

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