Seoul Jung-gu Provides 3 Billion KRW Loan Support from SME Development Fund in Q4

Visit the 'Crisis Small Business On-site Application Center' on the 1st floor of Jung-gu Office Main Building by the 15th... Loan interest rate 1.2% per year, 1-year grace period, equal installment repayment over 4 or 5 years

[Asia Economy Reporter Jong-il Park] Jung-gu, Seoul (Mayor Seoyangho) is launching a Q4 Small and Medium Enterprise Development Fund loan support worth a total of 3 billion KRW to assist small businesses and small merchants in the area who are experiencing financial difficulties due to the COVID-19 pandemic.

The support targets small and medium enterprises or small merchants with business locations in Jung-gu who have been registered as business operators in Jung-gu for more than six months as of the application date.

Additional points are given if applicants submit certificates for women-owned businesses, social enterprises, or disabled-owned businesses. However, financial and insurance industries, real estate, healthcare, luxury and speculative businesses are excluded from support, and loans may be restricted due to credit scores (credit rating), delinquency history, or inability to provide collateral.

The loan conditions include a fixed annual interest rate of 1.2%, with a repayment period of 5 years, allowing a choice between a 1-year grace period followed by 4 years of equal installments or 5 years of equal installments.

The loan purpose is limited to operating, facility, and technology funds.

The application limit is up to 200 million KRW per company within half of the previous year's sales, but manufacturing companies can apply for up to 300 million KRW. Startups and companies unable to verify last year's sales can apply for up to 30 million KRW.

Applications are accepted until the 15th by visiting the 'Crisis Small Merchant On-site Application Center' on the first floor of Jung-gu Office main building, submitting ▲loan application form ▲business plan ▲business premises lease contract ▲value-added tax standard certificate (2017?2020) ▲copy of business registration certificate ▲other preferential documents.

The district will finalize the support recipients and loan amounts through the district office review committee by the end of October, and after loan screening by banks and guarantee institutions, loans are expected to be provided around the end of November.

Meanwhile, small loan applications under 30 million KRW will be selected on a first-come, first-served basis, with simplified preliminary screening, immediate notification to financial institutions upon receipt, and loans executed after screening.

Seoyangho, Mayor of Jung-gu, said, "Small merchants and small businesses are experiencing unprecedented management difficulties due to the prolonged high-intensity social distancing caused by COVID-19. We hope this loan support will provide some relief."

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