Seongnam City to Support Small Business Special Guarantees with 17.1 Billion Won This Year

Seongnam City Hall

[Asia Economy (Seongnam) = Reporter Lee Young-gyu] Seongnam City in Gyeonggi Province will carry out a special guarantee support project worth 17.1 billion KRW for small business owners this year. The special guarantee is a system in which Seongnam City supports small business owners who lack collateral to receive unsecured credit loans from commercial banks.

Seongnam City will contribute 1.3 billion KRW to the Gyeonggi Credit Guarantee Foundation for the operation of the system. Gyeonggi Credit Guarantee Foundation will support small business owners in the Seongnam area by guaranteeing ten times the amount of Seongnam City's contribution.

This year, the city will provide 17.1 billion KRW as management support funds for small business owners, combining 13 billion KRW of Gyeonggi Credit Guarantee Foundation special guarantees and 4.1 billion KRW of the previous year's rollover guarantee supply balance. The maximum loan amount per person is 50 million KRW.

The special guarantee targets small business owners who reside in Seongnam City and have been operating their main business location in the area for more than two months (based on business registration certificate).

The city will also support the loan interest for small business owners who receive funds from banks through this special guarantee.

Among the interest on the special guarantee loan, the city will pay 2% of the loan interest for two years. To this end, the city has secured 560 million KRW for the small business special guarantee interest subsidy (interest difference compensation) project.

A city official said, "Last year, we supported 1019 local small business owners with 27.3 billion KRW in special guarantees and 547 million KRW in loan interest," adding, "Through this, we are helping to alleviate the financial difficulties and stabilize the management of small business owners struggling due to COVID-19."

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