Eunpyeong-gu Provides Low-Interest Loans (0.8%) to Support SMEs and Small Business Owners

Up to 300 Million KRW Support per Registered SME and Small Business... Special Credit Guarantee Recommended for Small Businesses with Insufficient Collateral and Food & Accommodation Sectors

[Asia Economy Reporter Park Jong-il] Eunpyeong-gu (Mayor Kim Mi-kyung) is accepting applications for loans from the Small and Medium Business Development Fund to provide emergency operating funds to small and medium-sized enterprises (SMEs) and small business owners in the area who have been pushed into crisis due to COVID-19, aiming to stabilize business management and revitalize the local economy.

The loan targets are SMEs and small business owners who have a business location in Eunpyeong-gu and have been registered for more than one year. The total support amount is 5 billion KRW. However, industries such as lodging, restaurants, bars, tobacco and liquor wholesale, real estate, finance and insurance, and other sectors that promote luxury, indulgence, or speculation are excluded.

This year’s loan support applies a temporary interest exemption for both existing and new borrowers with an interest rate of 0.8%. From the second half of the year, the fixed interest rate of 1.5% will be applied as before. Loans will be supported up to 300 million KRW for companies with collateral capability (real estate or credit guarantee) under a repayment plan of 2 years grace period and 2 years equal installment repayment.

Small business owners in the food and lodging sectors, which were temporarily supported last year due to COVID-19 but excluded this year, and those lacking collateral can apply for a special credit guarantee at the Seoul Credit Guarantee Foundation Eunpyeong branch with a guarantee limit of 7.5 billion KRW, up to 50 million KRW (up to 200 million KRW upon separate review).

Through the guarantee certificate, loans can be obtained from commercial banks at an interest rate of about 1.03% per annum, with repayment terms of 1 year grace period and 2 to 4 years repayment or a lump-sum repayment at 2 years maturity. However, small business owners in industries such as entertainment bars, liquor wholesale, and real estate that promote luxury, indulgence, or speculation are excluded from the guarantee target.

Companies wishing to apply for the Small and Medium Business Development Fund can download the application form and business plan from the Eunpyeong-gu Office website, fill them out, and submit them along with supporting documents such as business registration certificate, fund plan, and recent financial statements to the Job and Economy Division of Eunpyeong-gu Office.

Loan applications will be accepted until the loan funds are exhausted.

For detailed information on eligibility, loan conditions, and required documents, please check the announcement on the Eunpyeong-gu Office website or contact the Small Business Team of the Job and Economy Division at Eunpyeong-gu Office.

For special credit guarantee support, please consult the Seoul Credit Guarantee Foundation Eunpyeong branch.