Guri City - Guri Saemaeul Geumgo, Special Guarantee Interest Subsidy Agreement for Small Business Owners

Guri Saemaeul Geumgo Added to Five Existing Financial Institutions
2% Interest Subsidy for Up to 20 Million KRW in Loans for Three Years

The city of Guri, Gyeonggi Province (Mayor Baek Kyung-hyun) announced on the 16th that it signed a business agreement on the 15th with Guri Saemaeul Geumgo to support local small business owners facing difficulties in financing due to the economic downturn and rising loan interest rates by compensating the interest difference on loan funds through the ‘Small Business Special Guarantee Interest Subsidy Support Project.’

Guri City Hall exterior. Provided by Guri City

Through this agreement, Guri Saemaeul Geumgo was added to the existing five financial institutions (NH Nonghyup Bank, KB Kookmin Bank, Woori Bank, SC First Bank, Shinhan Bank) participating in the ‘Small Business Special Guarantee Interest Subsidy Support Project.’

The ‘Small Business Special Guarantee’ is a system in which the Gyeonggi Credit Guarantee Foundation, in agreement with the city, guarantees monetary debts that small business owners who are experiencing financial difficulties or lack collateral must bear when seeking loans. It is a guarantee product that applies relaxed screening regulations compared to general guarantees, funded by city contributions, to strengthen the competitiveness of small business owners and revitalize the local economy.

Accordingly, the ‘Small Business Special Guarantee Interest Subsidy Support Project,’ implemented by the city since May 2023, is a system that subsidizes part of the loan interest on funds borrowed through the special guarantee within the city’s budget, supporting 2% interest on loans up to 20 million KRW for three years (equal principal repayment).

However, young small business owners aged 19 to 39 are supported with 2% interest on loans up to 20 million KRW for five years (one-year grace period, four years equal principal repayment).

Applications are processed at the Guri branch of the Gyeonggi Credit Guarantee Foundation, and from the 15th, loans can be processed not only through the existing five financial institutions (NH Nonghyup Bank, KB Kookmin Bank, Woori Bank, SC First Bank, Shinhan Bank) but also through Guri Saemaeul Geumgo.

Mayor Baek Kyung-hyun of Guri said, “We thank Guri Saemaeul Geumgo for actively participating in the Small Business Special Guarantee Interest Subsidy Support Project,” and added, “We will discover and promote various support policy projects that provide practical help to small business owners struggling due to the economic downturn, high inflation, and high interest rates.”

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