Seongnam City Offers 1% Low-Interest Loans for Facility Improvements and Operating Funds to Food Businesses

Utilizing 4.2 Billion Won from the Gyeonggi-do Food Safety Promotion Fund

Seongnam City in Gyeonggi Province announced on March 19 that it will implement a program to provide loans at an annual low interest rate of 1% to food manufacturing and service businesses for facility improvements and operational funds.

Seongnam City Hall exterior. Provided by Seongnam City

This program is designed to alleviate the financial burden on small business owners struggling under rising prices and high interest rates by supporting facility upgrades and smooth business operations.

A total of 4.2 billion won from the Gyeonggi-do Food Safety Promotion Fund will be utilized for this purpose.

Food manufacturing and processing businesses needing funds for production facility improvements can receive up to 500 million won, while food service businesses seeking to upgrade their business premises can receive up to 100 million won. The loans are provided with a two-year grace period and repayment in equal installments over three years.

For food service businesses requiring restroom facility upgrades, up to 20 million won is available, and for exemplary restaurants and hygiene-rated establishments in need of operating funds, up to 30 million won is available. These loans are offered with a one-year grace period and repayment in equal installments over two years.

However, franchise businesses are excluded from receiving facility improvement funds as they do not qualify as small business owners.

Owners of food hygiene-related businesses located in Seongnam City who wish to apply for the loans must first visit a local NongHyup Bank branch (excluding unit cooperatives) with their identification card, business license, and business registration certificate for consultation.

Afterward, they must submit the preliminary credit screening form and loan application to the Sanitation Policy Division on the 5th floor of Seongnam City Hall.

Loan eligibility and amounts will be determined based on the applicant's collateral and financial standing.

Applications will be accepted until all funds are exhausted.

Seongnam City also carried out this program last year, providing a total of 669 million won in low-interest loans at 1% to five food businesses.

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