Suncheon-si Provides 15 Billion Won Loan Support for Small Business Owners

Published 03 Feb.2023 11:13(KST)

Implementation of Small Business Guarantee Loans and Interest Support Starting February

[Asia Economy Honam Reporting Headquarters, Reporter Heo Seon-sik] Suncheon City, Jeollanam-do (Mayor Noh Gwan-gyu) announced on the 3rd that it will provide financial support worth 15 billion KRW to small business owners struggling due to the economic downturn and the 3 highs (high inflation, high interest rates, high exchange rates).

The city will implement the ▲Small Business Guarantee Loan Project and ▲Small Business Loan Interest Subsidy Project from February until funds are exhausted to alleviate financial difficulties and stabilize management for small business owners.

Suncheon City will provide financial support amounting to 15 billion KRW to small business owners struggling due to the economic downturn and the three highs (high inflation, high interest rates, and high exchange rates).
Photo by Suncheon City

The loan limit is up to 30 million KRW per business, supported through an interest subsidy method that covers up to 3% of the loan interest for two years, with a two-year grace period and lump-sum repayment.

Eligible applicants are small business owners who have registered their business in Suncheon City and have operated their business continuously for more than one year.

Last year, the small business guarantee project supported approximately 11.5 billion KRW for 451 general guarantee cases and about 1.6 billion KRW for 60 special guarantee cases, while the interest subsidy project supported interest payments totaling 780 million KRW for 4,566 businesses.

Accordingly, the city signed agreements with the Jeonnam Credit Guarantee Foundation and five financial institutions (NH Nonghyup Bank, Hana Bank, Woori Bank, Suncheon Credit Union, Suncheon Central Credit Union) regarding the loan period, interest rate calculation methods, and types. Based on these agreements, small business owners can obtain loans at interest rates lower than market rates.

Applications for interest support can be submitted from the 6th at the Suncheon City Small Business One-Stop Support Center. To manage the expected influx of applicants by the 10th, applications will be accepted on a five-day rotation basis by day of the week.

Mayor Noh Gwan-gyu of Suncheon said, “We will do our best to ensure that guarantee loans and interest support become practical support measures for small business owners amid the ongoing economic downturn and high interest rate environment.”