[Asia Economy Reporter Jongil Park] Jung-gu, Seoul (District Mayor Seoyangho) will provide loan support from the Small and Medium Enterprise Development Fund in the third quarter to help alleviate the financial difficulties of small business owners.
Accordingly, applications for loan support will be accepted until the 17th.
The total loan amount is 6 billion KRW, with 4 billion KRW from the district funds and an additional 2 billion KRW from Woori Bank cooperative funds.
Eligibility includes small enterprises and small business owners as defined by the Act on the Protection and Support of Small Businesses, as well as small and medium enterprises specified in the Framework Act on Small and Medium Enterprises, provided they have a business location in Jung-gu and are registered as business operators.
The loan amount is up to half of the previous year's sales, with a maximum of 300 million KRW for manufacturers and 200 million KRW for other industries. Startups and companies that have difficulty verifying last year's sales can receive up to 30 million KRW.
The loan interest rate is a fixed annual rate of 1.4%, which is lower than market rates (Woori Bank cooperative funds are in the low 2% range), with options for a 1-year grace period followed by 4 or 5 years of equal installment repayments.
Additionally, the loan funds must be used only for operating, facility, or technology purposes.
Applications can be submitted by visiting the Jung-gu Office Traditional Market Division with the following documents: ▲loan application form ▲business plan ▲business premises lease contract ▲value-added tax standard certificate (2016?2019) ▲copy of business registration certificate.
Meanwhile, to improve convenience and efficiency in loan applications, the district has simplified the loan process for small loans under 30 million KRW. Applicants do not need to visit the Credit Guarantee Foundation separately for guarantee issuance; after submitting the loan application to the district office, they can receive loan consultation at the bank and submit the necessary documents for guarantee issuance simultaneously.
The district plans to hold an operation review committee meeting on July 24 to finalize the support recipients. Women-owned businesses, social enterprises, and businesses owned by persons with disabilities will receive additional points during the review, but those deemed ineligible based on credit management information or guarantee review results, as well as financial and insurance businesses, luxury or speculative companies, will be excluded.
Seoyangho, Mayor of Jung-gu, said, "Due to the prolonged COVID-19 pandemic, not only small business owners but many small and medium enterprises are facing economic difficulties. Along with quarantine efforts, we will strive in various ways to revitalize the local economy and prepare practical support measures."
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