Jeonju City Expands Special Guarantee Support for Small Business Owners

Jeonbuk Bank and Jeonbuk Shinbo Sign Business Agreement to Support Special Guarantee for Small Business Owners

[Jeonju=Asia Economy Honam Reporting Headquarters Reporter Kim Han-ho] Jeonju City, Jeonbuk Bank, and Jeonbuk Credit Guarantee Foundation have signed a business agreement to help financially marginalized small business owners struggling due to COVID-19 to recover.

According to Jeonju City on the 6th, in addition to providing 6 billion KRW in special guarantee funds for small business owners facing business difficulties due to COVID-19 in the first half of this year, an additional 4 billion KRW will be supported.

The special guarantee for small business owners is a system where Jeonju City and Jeonbuk Credit Guarantee Foundation issue guarantees on behalf of local small business owners who lack collateral and thus find it practically difficult to obtain loans from formal financial institutions, enabling them to secure operating funds loans.

By using the special guarantee for small business owners, they can receive loan guarantees up to 40 million KRW and interest subsidies up to 5% for five years, except for a 1% personal burden.

Repayment methods include equal principal installment repayment, where the loan principal is repaid in fixed amounts over the loan period, and a grace repayment method for small business owners who find it difficult to repay the principal initially.

The support target is small business owners who have operated their business in Jeonju City for more than three months and whose representative’s credit score is 879 points or below (equivalent to credit grade 3 or lower). Guarantee applications can be made at the Jeonbuk Credit Guarantee Foundation headquarters and its branches.

For more details, please contact the Jeonbuk Credit Guarantee Foundation.

Jeonju=Honam Reporting Headquarters Reporter Kim Han-ho stonepeak@asiae.co.kr

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