Guro-gu Provides Total 7.3 Billion KRW Loan Support for SMEs and Small Business Owners

430 million KRW Small Business Development Fund, 300 million KRW Commercial Bank Cooperation Fund Secured; 6.2 billion KRW Support in H1... Visit Applications by Feb 5; Loans up to 200 million KRW for SMEs, 50 million KRW for Small Merchants

[Asia Economy Reporter Jong-il Park] Guro-gu (Mayor Lee Seong) will carry out a loan support project worth a total of 7.3 billion KRW this year targeting small and medium-sized enterprises (SMEs) and small business owners.

Guro-gu announced on the 9th that it will implement a loan support project of 6.2 billion KRW in the first half and 1.1 billion KRW in the second half to alleviate financial difficulties of SMEs and small business owners and revitalize the local economy.

The loan support is divided into the SME Development Fund and the Commercial Bank Cooperation Fund.

The SME Development Fund is worth a total of 4.3 billion KRW with an annual interest rate of 1.8%. The Commercial Bank Cooperation Fund totals 3 billion KRW, and if the loan interest rate exceeds 1.8% per year, the district office will compensate up to 1% annually of the bank's interest rate.

Both the SME Development Fund and the Commercial Bank Cooperation Fund have a repayment condition of a 1-year grace period followed by 4 years of equal installment repayments (twice a year). SMEs can borrow up to 200 million KRW, and small business owners can borrow up to 50 million KRW.

The loan targets are SMEs with 5 or more regular employees and small business owners with fewer than 5 employees who have business locations in Guro-gu and have completed business registration. Companies registered for less than 6 months are excluded.

The SME Development Fund accepts applications from the 15th to February 5th, and the Commercial Bank Cooperation Fund accepts applications for 5 days at the beginning of each month. Companies wishing to apply can download the related documents from the Guro-gu Office website (www.guro.go.kr), fill them out, and submit them in person to the Regional Economy Division of the district office.

A Guro-gu official said, “To resolve management difficulties early due to the economic downturn, we decided to use 85% of the total loan amount in the first half of the year,” adding, “We hope the loan support will provide relief to SMEs struggling with financial difficulties.”

Guro-gu Regional Economy Division 860-2865