Gyeongnam Province to Provide 10 Billion KRW in Policy Funds for Small Business Owners in Q3

Startup and Business Stability Fund: 2.5% Annual Interest Subsidy for 1 Year, Up to 100 Million KRW Support

[Asia Economy Yeongnam Reporting Headquarters Reporter Kang Woo-kwon] Gyeongsangnam-do will provide a loan of 10 billion KRW in policy funds for the third quarter starting from the 14th, aiming to continuously supply stable policy funds quarterly to small business owners in the province who are struggling due to the prolonged COVID-19 pandemic.

The support criteria limit the loan to 100 million KRW per business, with either a lump-sum repayment after one year or equal repayments over four years following a one-year grace period. The province will subsidize the interest difference at a rate of 2.5% for one year on the loan amount.

For small business owners in the special response areas for employment and industrial crises, the repayment terms are either a lump-sum repayment after two years or equal repayments over three years following a two-year grace period, with a 2.5% interest difference subsidy for two years.

Reservations for fund consultation can be made from 9 a.m. on the 14th via the Gyeongnam Credit Guarantee Foundation website. After mobile phone identity verification, applicants can book a consultation date and time, and then visit the branch on the scheduled date with their ID and required documents.

Once the consultation is completed, a credit guarantee certificate will be issued after document screening such as credit rating and sales, and on-site inspection of the business. After the guarantee certificate is issued, the loan must be applied for within 60 days (30 days for electronic guarantees) at one of the seven contracted handling banks.

Kim Ki-young, Director of the Job Economy Bureau of Gyeongsangnam-do, stated, “As the special funds to overcome COVID-19 are running low, we decided to support the third quarter policy funds to ensure continuous fund supply. We hope this timely support will help small business owners overcome the crisis.”