Gwangyang City to Support 810 Million Won in Interest Subsidies for Small Business Loans This Year

From the 25th, 3% Interest Support with 2-Year Grace Period for 200 Small Business Locations

[Asia Economy Honam Reporting Headquarters Reporter Lee Hyung-kwon] Gwangyang City announced on the 25th that it will implement the ‘Small Business Loan Interest Subsidy Support Project’ to alleviate the financial difficulties and stabilize the management of small business owners in the region who lack collateral capacity due to the prolonged recession.

The Small Business Loan Interest Subsidy Project is a system that supports 3% of the loan interest from Gwangyang City’s budget to small business owners who receive a guarantee certificate from the Jeonnam Credit Guarantee Foundation and borrow up to 30 million KRW from financial institutions in the region.

This year, interest will be supported for about 200 new businesses and about 1,000 small business owners who have already received loans, with a support budget of 810 million KRW.

Applications are accepted from the 25th until funds are exhausted, and any small business owner who has a business site and address in Gwangyang City and has operated the business site for more than three months can apply.

Small business owners who wish to apply should visit the Jeonnam Credit Guarantee Foundation Gwangyang Branch (52 Oryu-ro, Gwangyang City, 2nd floor of Industrial Bank of Korea) to consult on the possibility of issuing a guarantee certificate, then submit an application form to the City Hall Regional Economy Division to receive a recommendation letter, and finally take out a loan from financial institutions that have signed an agreement with the city.

The financial institutions that have signed agreements with the city are Gwangju Bank (Donggwangyang Financial Center, Jungmadong Branch, Gwangyang Branch), IBK Industrial Bank of Korea (Gwangyang Branch), NH Nonghyup Bank (Gwangyang City Branch, Donggwangyang Branch), Shinhan Bank (Gwangyang Financial Center), MG Gwangyang Saemaeul Geumgo (Head Office), and Hana Bank (Gwangyang Branch).

For application documents and detailed information, check the announcement on the city’s website or contact the Regional Economy Team of the Regional Economy Division.

Lee Hwa-yeop, head of the Regional Economy Division, said, “We hope that the interest support will be a small seed of hope for small business owners who are facing increased difficulties due to the economic downturn caused by COVID-19,” and added, “We ask for the active interest and applications from small business owners.”