Continuing Loan Guarantees for Closed Busan Small Business Owners... Implementation of 'Bridge Guarantee' System to Support Restart

Implementation from the 5th, 25 Billion KRW Guarantee Support to Ease Repayment Burden for Small Business Owners Closing Due to Maturity

For Closures Using Credit Guarantee Foundation Guarantee, Personal Credit Score 950 or Below and Annual Income

View of Busan City Hall.

[Asia Economy Yeongnam Reporting Headquarters Reporter Kim Yong-woo] The 'Bridge Guarantee' system, which converts corporate guarantees of closed small business owners into personal guarantees, will be implemented in Busan starting from the 5th.

The Busan Metropolitan City (Mayor Park Hyung-jun) announced that from the 5th, it will implement the 'Bridge Guarantee' system, which converts corporate guarantees into personal guarantees to reduce the loan repayment burden of closed small business owners whose maturity has arrived and to support their restart.

Closed business owners whose maturity has arrived are required to repay immediately as guarantee maturity extension is not allowed. Since small business owners without spare funds due to COVID-19 may lose the opportunity to restart, the Bridge Guarantee system is designed to maintain guarantees for those who faithfully repay, giving them a chance to restart.

To implement the 'Bridge Guarantee,' Busan secured 4 billion KRW of city funds and 1 billion KRW of national funds through a supplementary budget in June.

By contributing 5 billion KRW to the Busan Credit Guarantee Foundation (operated at a 5x leverage), it plans to provide guarantee support worth 25 billion KRW to closed small business owners.

The support targets are closed business owners who used the Busan Credit Guarantee Foundation, have a personal credit score of 950 or below, or an annual income of 80 million KRW or less. Guarantees will be provided through the Busan Credit Guarantee Foundation within the scope of existing business loan balances, with a guarantee fee rate of 1.0% and a guarantee period of up to 5 years.

Mayor Park Hyung-jun of Busan said, “As a result of the 1st Emergency Economic Measures Meeting, we supported 100 billion KRW to 10,000 local small business owners who found it difficult to receive further support through the 'Small Business 3-No Policy Funds' launched at the end of May. In addition, we will help closed small business owners repay loans normally through the 'Bridge Guarantee' support.”

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