Shinbo to Provide 3 Trillion Won in New Loans to Tenant Small Business Owners in Restricted and Management Crisis Sectors

Overview of the Financial Support Program for Small Business Owners. Photo by Korea Credit Guarantee Fund

[Asia Economy Reporter Song Seung-seop] The Korea Credit Guarantee Fund announced on the 13th that it will provide 3 trillion won in new loans to tenant small business owners in industries subject to gathering restrictions and management crises.

The Credit Guarantee Fund revamped the ‘Small Business Financial Support Program’ together with 12 banks. The goal is to alleviate the financial difficulties and stabilize the management of tenant small business owners facing crises due to the prolonged COVID-19 situation.

According to the revamp, new loans totaling 3 trillion won will be supplied starting from the 9th of this month. Funds can be supported through one-stop screening at branches nationwide of the 12 banks. General individual small business owners can still borrow up to 20 million won through the basic program as before.

For tenant small business owners, the financial support program was originally applied only to industries subject to gathering restrictions. This will be significantly expanded to include 112 industries in management crisis. The support limit can be increased by an additional 20 million won on top of the basic program.

Additionally, the second supplementary budget, organized to ease the burden on tenant small business owners working in industries subject to gathering restrictions and management crises, has been reflected. During the total 5-year guarantee period, the guarantee fee will be fully waived for the first 2 years, and the guarantee fee rate for the following 3 years will be lowered by 0.2 percentage points from the existing 0.6% to 0.4%.

A Credit Guarantee Fund official stated, “Small business owners are the foundation of the national economy’s growth,” and emphasized, “Through this revamp of the Small Business Financial Support Program, we will eliminate blind spots in support and strive to help small business owners overcome the COVID-19 crisis.”

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