Gwangsan-gu, Gwangju Provides 2.7 Billion Won Special Guarantee to Revitalize Alleyway Commercial Districts

[Asia Economy Honam Reporting Headquarters Reporter Lee Gwan-woo] A total of 2.736 billion KRW in emergency fund loans will be provided to small business owners in Gwangsan-gu, Gwangju.

Gwangsan-gu, Gwangju Metropolitan City announced on the 15th that it will start the special guarantee loan "Sajangnim Dasi Seogi Loan" for small business owners suffering from COVID-19 from the 16th.

On the same day, Kim Sam-ho, Mayor of Gwangsan-gu, Choi Young, Vice President of Gwangju Bank, Kim Jong-bok, Chairman of Gwangju Eoryong Credit Union, Byun Jeong-seop, Chairman of Gwangju Credit Guarantee Foundation, and Jeong Jong-hyun, Head of Gwangsan-gu Corporate Doctor Center, signed an agreement for the special guarantee loan "Sajangnim Dasi Seogi Loan" for small business owners.

Under this agreement, small business owners with workplaces in Gwangsan-gu can borrow up to 20 million KRW on the condition of a 1-year grace period and 5-year installment repayment.

Since there is a guarantee certificate from the Gwangju Credit Guarantee Foundation, there is no need to provide collateral or additional guarantees, and Gwangsan-gu will support 2% of the interest for one year.

For example, if 20 million KRW is borrowed, there is an effect of saving 400,000 KRW in interest for one year.

To establish the "Sajangnim Dasi Seogi Loan," Gwangsan-gu contributed 100 million KRW for the special guarantee fund and 55 million KRW for interest subsidy costs, while Gwangju Bank and Gwangju Eoryong Credit Union each contributed 50 million KRW.

The Gwangju Credit Guarantee Foundation operates twelve times the contribution amount as a guarantee fund for small business loans, and the Gwangsan-gu Corporate Doctor Center helps small business owners become self-reliant through discovering guarantee targets and consulting.

The loan process proceeds by receiving funds from Gwangju Bank or Gwangju Eoryong Credit Union after consultation and judgment by the Gwangju Credit Guarantee Foundation.

On the 10th, Gwangsan-gu also signed a 1% interest rate unsecured hope loan agreement for low-credit small business owners with five local mutual finance institutions including the Gwangsan Economic Vaccine Meeting, Together Gwangsan Sharing Culture Foundation, and Usan Credit Union.

The total loan amount prepared through this agreement is 3.1 billion KRW, with a maximum loan amount of 5 million KRW for small business owners with credit rating 8 or below, and 10 million KRW for others.

Including the "Sajangnim Dasi Seogi Loan" starting from the 16th, a total of 5.8 billion KRW in emergency loan funds will be provided to local small business owners.

Kim Sam-ho, Mayor of Gwangsan-gu, said, "We will take the lead in protecting the local economy's vital neighborhood markets from COVID-19 while establishing a pioneering economic decentralization model, which is one of the core conditions for sustainable autonomous decentralization."

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