Yeosu City Expands Support for 'Small Business Management Stabilization Fund'

Published 03 Jan.2023 14:32(KST)

Small Business Secondary Interest Support Rate Raised to 4%

Special Contributions for Low-Credit and Vulnerable Small Business Owners Also Expanded

Yeosu City Expands Support for 'Small Business Management Stabilization Fund'

[Yeosu=Asia Economy Honam Reporting Headquarters Reporter Choi Cheol-hoon] Jeonnam Yeosu City (Mayor Jeong Gi-myeong) announced that it will expand support for the 2023 interest subsidy project and the special contribution fund to the Jeonnam Credit Guarantee Foundation to stabilize the management of small business owners who are struggling due to the prolonged COVID-19 pandemic and economic recession.

The ‘Small Business Interest Subsidy Project’ is a program that compensates for the interest difference on loans taken by small business owners in Yeosu City.

Until last year, the city supported an interest difference of 3%, but due to the recent high interest rates increasing the interest burden on small business owners, it plans to raise the interest difference support to 4% starting this year.

Small business owners who wish to receive support should first consult with the Jeonnam Credit Guarantee Foundation or financial institutions, and if a loan is possible, they can visit the Yeosu City Regional Economy Division to apply.

The loan limit is up to 50 million KRW per business, with a 2-year grace period and lump-sum repayment.

The support target is small business owners who have their business located in Yeosu City and have maintained operations for more than 3 months. Further details will be announced on the city’s website.

The special contribution fund to the Jeonnam Credit Guarantee Foundation, which has been annually contributed to support the issuance of loan guarantees for low-credit or vulnerable small business owners, will also be expanded from 150 million KRW to 300 million KRW this year.

The support scale is 3 billion KRW, which is ten times the local government’s contribution, and it is expected to contribute to revitalizing the local economy by providing liquidity funds to small business owners in financial blind spots.

A city official said, “Small business owners must survive for our economy to survive. We hope that this expansion of management stabilization funds for small business owners will help local small business owners who are facing difficulties. We will continue to make greater efforts to revitalize neighborhood markets and the local economy.”