Yangcheon-gu to Allocate 5 Billion Won for SME Development Fund This Year... Lowest Interest Rate of 0.8% Among Autonomous Districts
Published 11 Feb.2024 04:15(KST)
Reflecting High Loan Demand Early in the Year, Expanded to 3 Billion KRW in First Half... Applications Accepted Until February 23
Up to 300 Million KRW for Manufacturing, Up to 80 Million KRW for Other Sectors like Wholesale and Retail, Loan Interest Rate 0.8%
Yangcheon-gu (Mayor Lee Gi-jae) announced that it will provide loans from the “Small and Medium Enterprise Development Fund” worth 5 billion KRW annually to stabilize the management of small and medium-sized enterprises (SMEs) and small business owners struggling due to high inflation, high interest rates, and economic recession, and will accept applications for the first half loan support until the 23rd of this month.
This year, the total loan amount of the Small and Medium Enterprise Development Fund is 5 billion KRW, with 3 billion KRW for the first half and 2 billion KRW for the second half. Unlike last year when the amount was 2.5 billion KRW per half, the loan scale was flexibly adjusted to reflect the higher loan demand in the first half, which is the start of the year.
The loan interest rate is the lowest among Seoul’s autonomous districts at an annual rate of 0.8%. The rate was reduced from 1.5% during the COVID-19 period to 0.8% and has been maintained without increase this year to ease the burden on SMEs and small business owners.
The support targets are SMEs and small business owners who have a business place in Yangcheon-gu and have been registered as a business for more than six months as of the announcement date (January 31). However, tobacco wholesale and retail, liquor wholesale and retail, restaurants, real estate, and financial businesses are excluded.
The loan limit is up to 300 million KRW per company for manufacturing businesses and up to 80 million KRW for other wholesale and retail businesses. The repayment condition is a 2-year grace period followed by 3 years of equal installment repayments, and the loan funds must be used only for working capital, facilities, or technology funds.
Companies wishing to apply should prepare ▲loan application form ▲business plan ▲business registration certificate ▲national and local tax payment certificates ▲recent fiscal year financial statements or documents verifying sales, and submit them in person to the Job and Economy Division office of the district office by the 23rd of this month. For more details, refer to the announcements and public notices on the district office website.
Applicants for the first half Small and Medium Enterprise Development Fund loans will be finalized through the Fund Operation Committee’s review, and loans can be obtained from mid-March through the Woori Bank Yangcheon-gu Office branch. The schedule for the second half loan support (2 billion KRW) is planned to be conducted between July and August.
Since its establishment in 1993 with an initial fund of 1 billion KRW from the district’s contribution, the Yangcheon-gu Small and Medium Enterprise Development Fund has supported 1,015 cases totaling 70.4 billion KRW, contributing to alleviating the management difficulties of SMEs and small business owners in the region.
Lee Gi-jae, Mayor of Yangcheon-gu, said, “I hope this loan support will help stabilize the management of SMEs and small business owners facing difficulties,” and added, “We will continue to discover and promote highly effective management support policies that invigorate the local economy.”
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