Gyeonggi Credit Guarantee Foundation Supports Flood-Damaged SMEs and Small Businesses with 'Special Funds and Special Guarantees'

Gyeonggi Credit Guarantee Foundation

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Credit Guarantee Foundation is providing special management funds to small and medium-sized enterprises (SMEs) and small business owners affected by the heavy rain. It will also actively expand special guarantees for disaster-affected SMEs. In addition, an emergency system will be established to provide urgent support for disaster-affected companies.

Gyeonggi Credit Guarantee Foundation announced on the 6th that it has established an emergency support system for disaster-affected companies to assist SMEs and small business owners in the province who suffered damage from the recent heavy rains.

Through the establishment of the emergency system, Gyeonggi Credit Guarantee Foundation plans to maintain a cooperative system with 31 cities and counties in the province and respond promptly according to emergency situations.

Gyeonggi Credit Guarantee Foundation will also provide special management funds together with Gyeonggi Province.

The support targets are companies that have received a disaster SME confirmation certificate or damage confirmation letter from local governments. The loan limit is 500 million KRW for SMEs and 50 million KRW for small business owners. The loan period is 4 years (1 year grace period, 3 years equal repayment), and the loan interest rate is in the 1% range per annum (bank interest rate and secondary interest subsidy rate). Collateral includes real estate, guarantees, etc.

Gyeonggi Credit Guarantee Foundation is also promoting active guarantee support for disaster-affected companies through the special guarantee system for disaster SMEs.

The support targets are companies that have received a disaster SME confirmation certificate or damage confirmation letter from the government (local governments). The support limit for working capital is 200 million KRW per company or the lesser amount of disaster-related damage, and for facility funds, it is the facility ownership funds within the disaster-related damage amount. The guarantee ratio is 100%, and the guarantee fee rate is 0.5% per annum (0.1% per annum for special disasters).

Gyeonggi Credit Guarantee Foundation is implementing a special guarantee for disaster SMEs recommended separately by Bucheon City and Hanam City. The support targets are companies recommended by the heads of the respective cities and counties with a recommendation letter to use the special guarantee for disaster SMEs. The support limit is 100 million KRW (50 million KRW for non-manufacturing) or the lesser amount of disaster-related damage. The guarantee ratio is 100%, and the guarantee fee rate is 0.5% per annum (0.1% per annum for special disasters).

Lee Min-woo, Chairman of Gyeonggi Credit Guarantee Foundation, emphasized, "Gyeonggi Credit Guarantee Foundation will strive to help SMEs and small business owners in the province affected by this heavy rain quickly resume normal business activities," adding, "We will do our best to ensure that funds are provided in a timely manner through cooperation with Gyeonggi Province and cities and counties."