One-Year Interest-Free Loan Support, Total Support Scale 2 Billion KRW, Repayment Period Selectable Within 5 Years... Applications Accepted from February 1 to 16, Up to 20 Million KRW per Company
[Asia Economy Reporter Jongil Park] Dongjak-gu (Mayor Changwoo Lee) is launching a loan support program using the Small and Medium Business Development Fund for small and medium-sized enterprises (SMEs) and small business owners in the region.
To strengthen financial support for SMEs and small business owners struggling due to COVID-19 and to help stabilize their management as much as possible, this year, interest-free loans will be provided for one year on a temporary basis, followed by an annual interest rate of 1% after one year, with a repayment period selectable within a 5-year range.
The funds can be used for management stabilization purposes such as rent, public utility charges, and labor costs. The total support scale is 2 billion KRW, with a maximum of 20 million KRW per company.
The loan recipients and amounts will be decided through a preliminary review of application documents and a deliberation meeting of the Small and Medium Business Development Fund Operation Committee.
Eligible companies are SMEs that have been operating for more than three months with a business site in the region and can provide collateral such as real estate or credit guarantees, and are not subject to exclusion criteria (financial industry, insurance industry, entertainment and nightlife businesses, restaurants with five or more employees, etc.).
Companies wishing to apply should prepare the loan application form, lease contract, and other required documents and submit them in person to the Economic Promotion Division of Dongjak-gu Office (9th floor, Yuhan Yanghaeng) from February 1 to 16. However, the program may end early if the funds (2 billion KRW) are exhausted.
For more details, please contact the Economic Promotion Division of Dongjak-gu Office.
Kim Jungwon, head of the Economic Promotion Division, said, “We hope this loan support will help stabilize the management of SMEs and small business owners who are facing difficulties due to the prolonged COVID-19 pandemic.”
Meanwhile, last year, an additional 5 billion KRW was invested in the Small and Medium Business Development Fund, with temporary interest-free loans for one year and temporary deferral of principal repayment to support SMEs and small business owners.
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