Gwangyang City Begins Interest Subsidy Support for Small and Medium Enterprise Development Loans This Year

Total Scale of 30 Billion KRW, Up to 300 Million KRW Loan per Company, 3% Interest Support for General Loans

[Asia Economy Honam Reporting Headquarters Reporter Lee Hyung-kwon] Gwangyang City announced on the 20th that it will provide the ‘Interest Subsidy for Small and Medium Enterprise Development Loans’ to alleviate the management difficulties of local small and medium-sized enterprises (SMEs) and enhance their competitiveness.

The city will actively respond to the management difficulties faced by local companies due to the spread of COVID-19 and the increased demand for loan support following the rise in industrial complex occupancy rates by providing a total of 30 billion KRW in interest subsidies for loans.

The application period is from today until funds are exhausted. Companies that have their main office and business site in Gwangyang City and have been operating for more than two years in sectors such as ▲manufacturing ▲transportation and warehousing ▲information and communication ▲waste or environmental restoration services are eligible to apply.

The support categories include four areas: general operating funds, technology development funds, facility modernization funds, and startup funds. The maximum support amount is up to 300 million KRW per company, with an interest subsidy of 3% on the loan amount (4% for preferential companies such as women-owned businesses).

Loan repayment is a lump sum payment after a two-year grace period. Loans can be obtained through 14 branches of seven financial institutions that have agreements with the city.

Applicants can check the required documents and detailed information on the city’s website under the announcements or corporate support news sections, or contact the Regional Economy Division’s Corporate Support Team.

Lee Hwa-yeop, head of the Regional Economy Division, said, “We hope this will help stabilize the management of SMEs struggling with financial difficulties due to the impact of COVID-19,” and added, “We will continue to prepare various corporate support measures to make the city a better place for businesses.”

Meanwhile, since 2003, Gwangyang City has supported 1,672 companies with a total of 9.1 billion KRW in interest subsidies.