Gangdong-gu, 18 Billion Won Special Credit Guarantee Loan for Small Business Owners

District supports full interest for small business loans for 1 year... Special credit guarantee for small businesses accepted at Hana Bank from September 28

[Asia Economy Reporter Park Jong-il] Gangdong-gu (Mayor Lee Jeong-hoon) will provide special credit guarantee loans to support small business owners in the area who are facing financial difficulties due to the novel coronavirus disease (COVID-19) starting from the 28th.

To this end, on the 22nd, Gangdong-gu Office signed a business agreement with the Seoul Credit Guarantee Foundation and Hana Bank. Gangdong-gu secured the guarantee limit through funding, managed execution details; the Seoul Credit Guarantee Foundation handled credit guarantees and eligibility verification reviews, and executed special credit guarantees; Hana Bank received applications and implemented loans, establishing a three-party collaboration system for special credit guarantee loan support.

The loan target includes small business owners located in Gangdong-gu who have been registered for more than three months and whose representative’s credit rating is between grades 1 and 9.

The loan limit per business ranges from 10 million to 30 million KRW, with repayment terms of a 1-year grace period followed by 3 years of equal principal installment repayments.

Small business owners wishing to receive loan support can visit local Hana Bank branches from September 28th for consultation and application submission. Afterwards, the loan support will proceed through procedures such as confirmation of guarantee issuance by the Seoul Credit Guarantee Foundation.

The loan period will last until the 18 billion KRW fund is exhausted. In particular, small business owners who receive special credit guarantee loans will have all interest accrued for one year from the loan date fully supported by the district, which is expected to alleviate the interest burden on small business owners.

Additionally, to assist small business owners in the area struggling due to COVID-19, a consultative body consisting of six organizations including Gangdong-gu, Gangdong-gu Chamber of Commerce, Seoul Entrepreneurs Association, Gangdong-gu Small Business Federation, Seoul Credit Guarantee Foundation, and Hana Bank has been launched.

Lee Jeong-hoon, Mayor of Gangdong-gu, said, “We hope this special credit guarantee loan support will help small business owners overcome the crisis caused by the economic downturn due to COVID-19, especially those facing financial difficulties due to lack of collateral.” He added, “The district will continue to do its best to support small business owners and revitalize the local economy.”