Gwangju Bank and Buk-gu Implement 'Special Guarantee Loan for Small Business Owners' Agreement

[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] Gwangju Bank (President Song Jong-wook) announced on the 21st that it has contributed 50 million KRW to the 'Special Guarantee Loan for Small Business Owners' in Buk-gu, Gwangju Metropolitan City to respond to the local economic downturn caused by the spread of COVID-19.

As Buk-gu, Gwangju Metropolitan City, has taken early special guarantee support measures for small business owners in the district to minimize management damage such as sales decline due to the spread of COVID-19, Gwangju Bank will also carry out the 'Buk-gu Office Small Business Owner Special Guarantee Loan' project, which has been promoted annually since 2011, this year.

In particular, this time, due to the spread of COVID-19, an additional 20 million KRW was separately contributed to Buk-gu, increasing the amount to 50 million KRW compared to the previous year, and a total of 2.25 billion KRW in special guarantees will be supported.

The target companies are small business owners operating their businesses in Buk-gu, Gwangju, who meet certain requirements (manufacturing and construction businesses with fewer than 10 regular employees / wholesale and retail, food service, service industries, etc. with fewer than 5 regular employees), and are companies recommended by Gwangju Bank or Gwangju Credit Guarantee Foundation. Support is provided up to 20 million KRW per company, and the loan period is up to 5 years.

Also, the guarantee ratio borne by customers is preferentially applied at 100% regardless of credit rating, the loan interest rate is specially discounted by up to 1.2 percentage points (p), and Buk-gu Office will compensate for the 2% interest difference for 2 years after the loan execution.

Kim Jae-chun, Head of Sales Promotion Department at Gwangju Bank, said, "As a representative bank of Gwangju and Jeonnam, we have contributed to the special guarantee for small business owners at Buk-gu Office following the special contribution to the Gwangju Metropolitan City Alley Market Special Guarantee. We hope this will help small enterprises and small business owners in the region who are struggling with management difficulties and revitalize the local economy. We will continue to prepare various financial support measures for local residents with a sense of mission as the representative bank of Gwangju and Jeonnam and achieve mutual growth with the region."