Nowon-gu Provides 3 Billion KRW Loan Support from Small Business Development Fund to Overcome COVID-19

Loan scale totaling 3 billion KRW (1.5 billion KRW each in first and second half), up to 200 million KRW per company... Expanded support to restaurant industry in 2021, special low interest rate of 1.5% per year applied

[Asia Economy Reporter Jongil Park] Nowon-gu (Mayor Oh Seung-rok) is implementing a special collateral loan to alleviate financial difficulties faced by small and medium-sized enterprises (SMEs) and small business owners due to the prolonged COVID-19 pandemic.

This year, a notable point is the expansion of eligible applicants to include the restaurant industry, considering the district’s characteristic of having many restaurants.

Additionally, as a measure to overcome the prolonged COVID-19 situation, a special low interest rate of 1.5% per annum will be applied for the loans.

The total loan amount is 3 billion KRW for both the first and second half of the year. Loans of up to 200 million KRW per business will be provided for facility funds, operating funds, and technology development funds.

Repayment conditions allow businesses to choose between a 1-year grace period followed by 4 years of equal installment repayments or a 2-year grace period followed by 3 years of equal installment repayments, depending on their circumstances.

Eligible applicants are SMEs and small business owners with their main office registered in Nowon-gu. However, businesses in finance and insurance, real estate, lodging, and dance hall operations are excluded. Also, businesses currently repaying loans from the SME Development Fund or those with overdue national or local taxes are restricted from applying.

Applications can be made by visiting the Nowon-gu Office’s 3rd floor Job and Economy Division by the 26th of this month after prior consultation with designated banks (Kookmin Bank Nowon-gu Office Branch, IBK Bank Nowon Station Branch) to confirm collateral evaluation and loan eligibility.

After on-site inspections, document review, and deliberation by the Fund Management Committee, loans will be disbursed starting mid-April.

Required documents include ▲ loan application and business plan (downloadable from the district website) ▲ copy of business registration certificate (corporations must submit corporate registration certificate) ▲ financial statements for the past two years (issued by the National Tax Service or verified by a tax accountant) ▲ certificates of full payment of national and local taxes, etc.

It is important to note that collateral such as real estate or credit guarantees must meet bank lending regulations. If the loan is used for purposes other than intended, the loan may be recalled and retroactively subjected to general interest rates, so caution is advised.

For more details, inquiries can be made to the Job and Economy Division at the district office.

Meanwhile, for small enterprises and small business owners lacking collateral and unable to apply for this SME Development Fund loan, a special credit guarantee loan support program is planned for around May.

Mayor Oh Seung-rok stated, “I hope this support fund will help stabilize the management of SMEs and small business owners struggling with financial difficulties due to the COVID-19 impact. We will continue to do our best to find various support measures to assist those exhausted and struggling from the prolonged pandemic.”

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