This year, a total loan of 3 billion KRW will be provided, with 1.5 billion KRW supported in each half-year... Up to 200 million KRW per company, 2.0% annual interest rate, 1-year grace period, 4-year equal installment repayment... First half loan applications accepted from Feb 24 to Mar 13
[Asia Economy Reporter Jong-il Park] Nowon-gu (District Mayor Oh Seung-rok) will provide loans from the Small and Medium Business Development Fund in the first half of 2020 to alleviate financial difficulties faced by small and medium-sized enterprises (SMEs) and small business owners due to the impact of the novel coronavirus.
The total loan amount is 3 billion KRW, with 1.5 billion KRW allocated for each half of the year. Eligible applicants are SMEs and small business owners registered under Article 8 of the Value-Added Tax Act with their main office located in Nowon-gu.
The loan limit is up to 200 million KRW per company, available for facility funds, working capital, and technology development funds, with an annual interest rate of 2%, a one-year grace period, and equal installments over four years. However, businesses in finance and insurance, real estate, lodging and food services, dance hall operations, those currently repaying loans from the Small and Medium Business Development Fund, and companies with outstanding national or local taxes are restricted from applying.
Applications for the first half loan can be submitted from February 24 to March 13 by visiting the Job and Economy Division on the 3rd floor of Nowon-gu Office. Prior consultation with the designated banks (Kookmin Bank Nowon-gu Office Branch ☎2197-4461, Industrial Bank of Korea Nowon Station Branch ☎939-3811, extension 410) is required before application, to confirm collateral evaluation and to fill in the loan application amount on the form.
Applicants will be selected in early April after on-site inspections, document reviews, and deliberations by the Fund Management Committee.
Required documents include ▲loan application form and business plan ▲copy of business registration certificate (corporations must submit corporate registration certificate) ▲financial statements for the last two years (issued by the National Tax Service or verified by a tax accountant) ▲certificate of full payment of national taxes, one copy each. Additional related documents can be checked on the district website. Small business owners (in mining, manufacturing, construction, transportation industries with fewer than 10 regular employees, and other industries with fewer than 5 regular employees) are eligible for preferential interest rates.
The preferential interest rate is 1.8% annually, and applicants must additionally submit the 2019 withholding tax report. If verification of regular employees is required, payroll statements, employment contracts, and other documents must also be submitted.
It should be noted that all applicants must have collateral capability such as real estate or credit guarantees according to bank loan regulations. If the loan is used for purposes other than intended, the loan may be recalled and the general interest rate applied retroactively.
Furthermore, the Fund Management Committee may adjust loan amounts or exclude applicants based on their review.
Since 1993, the district has operated the Small and Medium Business Development Fund loan support project, providing a total of 59.145 billion KRW to 529 companies up to last year. Applications for the second half loan support will begin in August.
District Mayor Oh Seung-rok said, “We hope this support fund will help stabilize the management of SMEs and small business owners struggling with financial difficulties due to the coronavirus impact. We will continue to seek various support measures to contribute to revitalizing the local economy.”
Job and Economy Division (☎2116-3487)
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