Namyangju City Provides 10 Billion KRW in Special Guarantee and Loan Interest Support for Small Business Owners

Namyangju City Hall

[Asia Economy Reporter Ra Young-cheol] Namyangju City in Gyeonggi Province will support special guarantees and loan interest payments worth 10 billion KRW for local small business owners this year.

The special guarantee system provides up to ten times the amount of the contribution as a guarantee, allowing small business owners with high growth potential but insufficient collateral, who cannot obtain loans from commercial banks, to receive low-interest loans from seven local financial institutions that have agreements with the city and the Gyeonggi Credit Guarantee Foundation.

Namyangju City stated on the 26th, "We contributed 1 billion KRW, a 40% increase from last year, and, anticipating an increase in loans, we have secured 260 million KRW, a 110% increase, to cover the interest differential compensation."

The loan guarantee limit is up to 50 million KRW, and the city will cover loan interest up to 2% for three years. The special guarantee is limited to small business owners who have a business location in Namyangju City and have been operating for more than two months.

The city expects that the special guarantee system will greatly help small business owners facing financial difficulties due to the prolonged COVID-19 pandemic by alleviating their funding shortages and reducing interest burdens.