Expansion of Hope Plus Special Guarantee Limit
Major Special Guarantee System Improvements of Regional Credit Guarantee Foundations
[Asia Economy Reporter Kim Cheol-hyun] The Ministry of SMEs and Startups (Minister Lee Young, hereinafter referred to as the Ministry) announced on the 21st that it will significantly reorganize the major special guarantee programs of regional credit guarantee foundations, including expanding the loan limit of the 'Hope Plus Special Guarantee' implemented since January this year.
Hope Loan Plus is a financial support program worth a total of 10 trillion won that provides loans up to 10 million won at an interest rate of 1~1.5% based on credit rating for small business owners experiencing sales decline. To provide broader and stronger support for small business owners, the loan limit of the Hope Plus Special Guarantee will be expanded from 10 million won to 20 million won, and the support target will be expanded to include recipients of loss compensation funds.
Small business owners with medium credit who have previously received the Hope Plus Special Guarantee can additionally receive a 10 million won guaranteed loan, and low-credit small business owners who have received the Small Enterprise and Market Service (SEMAS) Hope Loan can receive an additional special guarantee with a limit of 10 million won through regional credit guarantee foundations. Also, previously only recipients of quarantine support funds (based on confirmed sales decline) could apply, but with the commencement of loss compensation fund payments, recipients of loss compensation funds with medium and low credit are now added to the support targets.
The 'Medium and Low Credit Special Guarantee' supports small business owners struggling due to the impact of COVID-19 with a loan limit of 20 million won for five years (one-year grace period, four years installment repayment). Previously, only recipients of quarantine support funds could apply, but in this reorganization, the condition of receiving quarantine support funds has been removed. It means that the guarantee target has been expanded to all medium and low credit holders so that they can apply for the special guarantee without any other conditions.
The 'Bridge Guarantee' is a product that converts the guarantee into a personal guarantee upon the expiration of the guarantee for closed business owners who are struggling due to COVID-19, to alleviate repayment burdens and provide opportunities for re-challenge. This time, the condition on the guarantee expiration date has been removed to expand the support target so that all closed business owners can apply.
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The reorganization of these special guarantees will be applied from July 1 for the Medium and Low Credit Special Guarantee and Bridge Guarantee, and from July 18 for Hope Loan Plus. Related information can be consulted and applied for through the 17 regional credit guarantee foundations nationwide.
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