Jongno-gu Provides Up to 30 Million KRW at 1% Interest Loans to Small Businesses Facing COVID-19 Crisis

The loan interest rate is 1.0% with a 1-year grace period and 4-year equal installment repayment... Eligible applicants include local small and medium-sized enterprises, startup incubation center tenants, and small business owners for facility and operating funds, technology development funds, etc... Up to 30 million KRW per company

[Asia Economy Reporter Park Jong-il] Jongno-gu (District Mayor Kim Young-jong) will implement the '2021 First Half Small and Medium Enterprise Development Fund Loan Support' to alleviate the financial difficulties of small business owners in the area who are struggling due to COVID-19 and other challenges.

The support scale is a total of 1.4 billion KRW, with a loan interest rate of 1.0%, a 1-year grace period, and equal installment repayments over 4 years. Loans are available only to companies with credit and collateral (real estate or guarantee) under bank credit regulations.

The funds can be used for facility and operating capital or technology development funds. When using real estate as collateral, support is available up to 30 million KRW; for credit guarantees, up to 30 million KRW for Jongno-gu residents and up to 20 million KRW for non-residents. However, industries restricted from loan support such as entertainment bars, financial services, insurance, and real estate are excluded.

The eligible applicants include ▲small and medium enterprises with factories registered within the district’s jurisdiction ▲tenants of startup incubation centers ▲small enterprises and small business owners as defined in Article 2 of the Act on the Protection and Support of Small Businesses ▲and those operating businesses recognized by the district mayor as promising and suitable for local characteristics.

Applications can be submitted from February 1 to 19 at Woori Bank Jongno-gu Office Branch and after consultation with the Seoul Credit Guarantee Foundation, applicants must submit the required and optional documents to the District Office’s Job and Economy Division.

Required documents include the loan application form, a copy of the business registration certificate, proof of business location, and value-added tax standard certificates for the last three years. Optional documents include a copy of the factory registration certificate, resident registration abstract, or employment insurance subscriber list.

Loan amounts may be adjusted or applicants excluded based on the review results of the Small and Medium Enterprise Development Fund Operation Deliberation Committee and the evaluations by the bank and credit guarantee foundation. After the loan is granted, usage details will be verified, so applicants must clearly prepare their fund usage plans.

For more detailed information, check the announcement on the Jongno-gu Office website or contact the Job and Economy Division.

Meanwhile, Jongno-gu has continuously promoted the Jongno Love Gift Certificate to help increase sales and supported the Good Rent Movement to assist local merchants in overcoming the prolonged economic downturn caused by COVID-19.

Additionally, the district regularly disinfects traditional markets and distributes related supplies such as masks, hand sanitizers, and prevention guideline posters. It has also held sales promotion events and social markets to support social economy sales channels for business recovery.

Furthermore, Jongno-gu has promoted the ‘Seoul-type Good Landlord Support Project’ to support private landlords who voluntarily reduce rents for self-employed and small business owners, encouraging coexistence between landlords and tenants, making multifaceted efforts to overcome the crisis caused by COVID-19.

District Mayor Kim Young-jong said, “I hope this will be of some help in alleviating the difficulties of small business owners in the district who are suffering from the frozen economic situation, including COVID-19.”