Dobong-gu, Continuous Support for COVID-19 Impacted SMEs with Development Fund Loans

Continuous Loan Support up to 2 Billion KRW per Company for SMEs and Small Business Owners Related to COVID-19 with a Fund of 2.8 Billion KRW until Depletion... 1.8% Annual Interest, 2-Year Grace Period, 3-Year Equal Installment Repayment

[Asia Economy Reporter Jongil Park] Dobong-gu (Mayor Dongjin Lee) provides continuous support for loans from the Small and Medium Business Development Fund to minimize damages to small and medium-sized enterprises (SMEs) and small business owners caused by the spread of COVID-19.

The Small and Medium Business Development Fund previously set support amounts quarterly and provided loan assistance accordingly. However, due to the economic downturn caused by COVID-19, the total support amount of 2.8 billion KRW for the 2020 Small and Medium Business Development Fund can now be applied for at any time until the funds are exhausted to alleviate difficulties faced by SMEs and small business owners.

The Small and Medium Business Development Fund was established in 1993 to promote the sound growth and management stability of SMEs and small business owners located in Dobong-gu. It offers management fund loans at a low interest rate of 1.8% per annum to SMEs and small business owners within Dobong-gu.

The loan amount is up to 200 million KRW per company, with an annual interest rate of 1.8%, and repayment is made in equal installments over 3 years after a 2-year grace period.

Eligible applicants are SMEs and small business owners located in Dobong-gu, who can apply for loans at any time with real estate or credit collateral. The loan funds can be used for facility funds, operating funds, and technology development funds. However, tobacco brokerage, liquor wholesale, finance, real estate, and entertainment bar businesses are excluded from loan eligibility.

Applications must be made by visiting the Dobong-gu affiliated banks (Woori Bank Dobong-gu Office Branch, Woori Bank Changdong Branch, IBK Bank Banghak-dong Branch) for prior consultation, then submitting the application in person to the Job and Economy Division of the district office. Final selection and loan approval are made through district review.

Mayor Dongjin Lee of Dobong-gu said, “We hope that the continuous loan support from the Small and Medium Business Development Fund will help SMEs and small business owners struggling with management difficulties due to the economic downturn caused by COVID-19. The district will also seek and provide support for local economic revitalization measures to minimize damages to SMEs and small business owners.”