Emergency Loan of 20 Million Won for Small Business Owners, Applications Start This Afternoon

Detailed Plans for the 3rd Disaster Relief Fund Are Also Under Discussion

[Asia Economy Reporter Kim Jong-hwa] The Ministry of SMEs and Startups announced on the 9th that it will provide emergency loan support to small business owners facing difficulties due to the resurgence of the novel coronavirus infection (COVID-19).

The loan is available to individuals or corporations who meet the small business owner criteria and have no reasons for loan restrictions such as tax delinquency or overdue payments to financial institutions. However, unhealthy industries such as gambling and entertainment, as well as speculative and gambling-promoting industries, are excluded from eligibility.

The loan limit is up to 20 million KRW per business, with a fixed annual interest rate of 2%, and the loan period is 5 years (2 years grace period). The loan amount may be partially reduced depending on the screening results. Online applications can be made through the Small Enterprise and Market Service website starting from 1 PM on the same day, and the program will continue until the budget of 300 billion KRW is exhausted.

Small business owners of key management facilities who are experiencing difficulties due to gathering bans and business restrictions following the escalation of social distancing measures can receive an additional loan of up to 10 million KRW using a guarantee certificate from the Regional Credit Guarantee Foundation. The interest rate is 2.0% per annum, with a maturity of 3 years and a possible extension of 2 years. Loans are available at 12 nationwide commercial banks.

Eligible businesses include entertainment bars, emotional pubs, hunting pubs, karaoke rooms, indoor standing performance venues, direct sales promotion centers, general restaurants, cafes, academies, PC rooms, and indoor sports facilities.

Meanwhile, discussions are also underway regarding disaster relief funds in response to the third wave of COVID-19. In this regard, Park Chi-hyung, Director of Small Business Policy at the Ministry of SMEs and Startups, stated, "Considering the development of COVID-19, we will prepare specific implementation plans such as support targets, scale, and methods to ensure prompt support for small business owners suffering from COVID-19."