Seongnam City Provides 13 Billion KRW Special Guarantee Support to Small Business Owners

Seongnam City Hall

[Asia Economy (Seongnam) = Reporter Lee Young-gyu] Seongnam City in Gyeonggi Province will carry out a special guarantee support project worth 13 billion won this year for small business owners facing financial difficulties due to high interest rates and economic recession. In addition, it will also conduct a special guarantee interest subsidy project worth 680 million won.

The special guarantee is a system in which Seongnam City supports small business owners who lack collateral to easily obtain credit loans from commercial banks.

To operate the system, Seongnam City contributed 1.3 billion won for the special guarantee project to the Gyeonggi Credit Guarantee Foundation on the 26th. Gyeonggi Credit Guarantee Foundation guarantees ten times the amount of Seongnam City's contribution. The maximum loan amount per small business owner is 50 million won.

The special guarantee targets small business owners residing in Seongnam City who have been operating their main business location in the region for more than two months (based on business registration certificate). Small business owners who receive the relevant credit guarantee certificate can obtain management funds loans from commercial banks.

Small business owners who receive loans through Seongnam City's special guarantee also receive support for loan interest. The city pays the loan interest amount corresponding to 2% of the special guarantee loan interest for two years. To this end, the city secured 680 million won for the small business special guarantee interest subsidy project.

Meanwhile, last year, the city supported 589 small business owners with 16 billion won in special guarantees and 600 million won in loan interest.

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