Nowon-gu Provides 3 Billion Won Loan Support for Small and Medium Enterprises and Small Business Development Fund

Loan of 1.5 Billion KRW Each for First and Second Half, Total 3 Billion KRW... 1 Billion KRW Increase Compared to Last Year
Special Low Interest Rate of 1.5% Maintained, Temporary 1.2% Interest Rate Applied for One Year from Loan Execution Date
Support Up to 100 Million KRW for SMEs, Up to 50 Million KRW for Small Business Owners, Applications Open Until February 23

Nowon-gu, Seoul (Mayor Oh Seung-rok) announced that it will provide the ‘2024 Small and Medium Enterprise (SME) and Small Business Promotion Fund Loan Support’ to alleviate financial difficulties faced by local SMEs and small business owners.

This year, the total loan amount is 3 billion KRW, an increase of 1 billion KRW from last year, and it will be supported in two installments of 1.5 billion KRW each in the first and second halves of the year. SMEs and small business owners with business locations in Nowon-gu and who have been registered as business operators for more than six months as of the application date are eligible to apply.

Each company and small business owner can receive funds needed for facility capital, operating capital, and technology development expenses. The loan limit is up to 100 million KRW for SMEs and up to 50 million KRW for small business owners. Applicants must have collateral capability such as real estate or credit guarantees in accordance with bank credit regulations.

However, loans are restricted for ▲ businesses in finance and insurance, real estate, lodging, gambling facility management and operation, or other industries not aligned with the fund’s support purpose ▲ companies currently receiving loans from the Nowon-gu SME Promotion Fund that have not yet completed repayment as of the announcement date ▲ companies with overdue national or local taxes.

Additionally, if the loan funds are used for purposes other than those intended, the loan may be recalled and retroactively applied with general interest rates, so caution is required.

The interest rate will remain at a low annual rate of 1.5%, which has been applied since 2021 during the height of the COVID-19 pandemic. This is to provide practical support to local companies struggling due to the prolonged economic downturn caused by the three highs (high inflation, high interest rates, and high exchange rates).

The repayment period can be chosen between a 1-year grace period followed by 4 years of equal installments or a 2-year grace period followed by 3 years of equal installments. A special low interest rate of 1.2% per annum will be temporarily applied for one year from the loan execution date.

Companies and merchants wishing to apply should first consult about collateral with a bank or credit guarantee foundation, then submit ▲ application form ▲ business plan ▲ value-added tax standard certificate (2020?2023) ▲ other documents proving preferential points to the Job and Economy Division on the 3rd floor of Nowon-gu Office.

The application period is from the 19th to the 23rd of this month, and the support recipients and loan amounts per recipient will be finalized through a review in March.

Application form templates can be downloaded from the Nowon-gu Office website, and detailed inquiries about the application can be made to the Small Business Support Team of the Job and Economy Division.

In addition, the district also supports the ‘Special Low-Interest Credit Guarantee Loan for Small Business Owners’ through a joint agreement between the Seoul Credit Guarantee Foundation and commercial banks. This is available to small enterprises and small business owners in the district who have been registered for more than three months, with a loan limit of 100 million KRW. However, similar to the SME Promotion Fund, loans are restricted for ▲ industries not aligned with the loan support purpose ▲ those with existing loan delinquencies or overdue national or local taxes.

The ‘Special Low-Interest Credit Guarantee Loan for Small Business Owners’ can be applied for until the budget is exhausted, and applications can be made by visiting the Nowon branch of the Seoul Credit Guarantee Foundation after making a prior reservation.

Oh Seung-rok, Mayor of Nowon-gu, said, “I hope this will provide some help to SMEs and small business owners struggling due to the economic downturn and high interest rates,” and added, “We will continue to actively promote various support projects for SMEs and small business owners.”

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