Nowon-gu Supports 20 Billion Won in Special Credit Guarantee Loans for Small Business Owners

Record Largest Scale Total 20 Billion KRW... Up to 20 Million KRW per Company, Annual Interest Rate Around 2.5%... Interest and Guarantee Fee (0.5%) Supported by District Office for 1 Year to Overcome COVID-19... 500,000 KRW Disaster Relief Fund for Small Business Owners Closed Due to Gathering Ban and Restricted Industries After COVID-19 Spread

[Asia Economy Reporter Jongil Park] Nowon-gu (Mayor Oh Seung-rok) will provide special low-interest credit guarantee loans for small business owners and special disaster relief funds for closed small business owners to alleviate financial difficulties faced by small business owners struggling due to the prolonged COVID-19 pandemic.

This is to help small business owners who fall into the blind spots of government support due to not meeting loan requirements and those who have closed their businesses due to management difficulties.

First, the scale of the special low-interest credit guarantee loans for small business owners supported this time is 20 billion KRW in total, an increase of 5 billion KRW compared to last year.

Following last year, when 489 small business owners received low-interest support benefits, the district office will support interest and guarantee fees (0.5%) for one year.

The support target is small business owners who have their main office in Nowon-gu and have been operating for more than six months with business registration. Up to 20 million KRW per company is supported for facility funds, operating funds, and technology development funds. The repayment condition is a one-year grace period followed by four years of equal installment repayments, with an interest rate around 2.5% per annum.

Applications can be made from May 3rd by visiting and consulting at KB Kookmin Bank Nowon-gu Office Branch, Woori Bank Nowon Financial Center, and Hana Bank Nowon Station Branch. After screening by the Seoul Credit Guarantee Foundation, loans are expected to be implemented from mid-June.

Required documents include ▲ Value-added tax filing documents (tax base report or tax base certificate) ▲ Copy of business registration certificate ▲ Copy of ID ▲ Copy of lease contract for business place and address ▲ Resident registration certificate ▲ Income amount certificate (2020) ▲ Financial transaction confirmation (if there are loan transaction details over 10 million KRW) ▲ National and local tax payment certificates, etc. Other related documents can be checked on the district office website. However, financial and insurance industries, real estate, lodging, and dance hall operation businesses are excluded. If there are loan records through the Seoul Credit Guarantee Foundation in 2021, if the loan limit set by the Seoul Credit Guarantee Foundation is exceeded, or if the credit rating is poor, the loan amount may be adjusted or restricted.

For small business owners who closed after the spread of COVID-19, the district will also provide special disaster relief funds by investing about 900 million KRW.

The target is businesses in prohibited or restricted operation sectors that closed due to administrative orders following strengthened social distancing (March 22, 2020). The business must be a small business with sales between 1 billion and less than 12 billion KRW by sector, fewer than five regular employees, and must have operated for more than 90 days before closure.

The district plans to process applications online in May once the related ordinance is amended by the district council, and after eligibility screening, 500,000 KRW will be paid per business.

Mayor Oh Seung-rok said, “I hope this support will be a strength to small business owners who are struggling to endure the prolonged COVID-19 pandemic,” and added, “We will continue to provide support for small business owners, vulnerable groups, and affected industries facing difficulties due to COVID-19.”

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