Busan City to Provide Additional Loan Interest Support for Small Business Owners' 'Special Lease Loan' Product

Additional 1.9% Interest Support for Government Loan Approvers to Reduce Financial Burden

One-Year Support for Busan Small Business Owners in Restricted and Prohibited Gathering Sectors

Busan City's announcement on the government's special loan interest support plan for small business tenants.

[Asia Economy Yeongnam Reporting Headquarters Reporter Kim Yong-woo] Busan City supports loan interest for small business owners using the government’s rental fee loan program.

Busan City announced details about supporting loan interest for small business owners starting from the 27th through the Busan Credit Guarantee Foundation website.

The support targets small business owners whose businesses are located in Busan and who have been approved for the government rental fee loan program for businesses subject to gathering bans or restrictions.

The ‘Government Rental Fee Loan Program’ for gathering-ban businesses has been accepting applications since the 25th through the Shinhan Bank exclusive mobile app provided by the Small Enterprise and Market Service, offering loans up to 10 million KRW at a fixed interest rate of 1.9%. Busan City will fully support the interest portion for one year for small business owners using this program.

The program related to gathering-restricted businesses is a loan product offered by 12 commercial banks including Busan, Kookmin, Nonghyup, Hana, Shinhan, Industrial, Woori, Gyeongnam, Daegu, Gwangju, Jeonbuk, and Jeju banks since the 18th, with interest rates ranging from 2% to 4%, under a consignment guarantee method by the Korea Credit Guarantee Fund. Busan City supports the interest portion corresponding to a 1.9% interest rate of the loan interest.

To enable small business owners to conveniently receive interest support, Busan City signed a business agreement with the Busan Credit Guarantee Foundation and simplified the procedure so that support can be received by simply entering the business registration certificate and government rental fee loan approval information.

Interest support for the government rental fee special loan is provided by prepaying the interest for one year corresponding to 1.9% of the loan amount (up to 10 million KRW).

Kim Yoon-il, Director of the Job and Economy Office of Busan City, said, “Through Busan City’s interest support for government rental fee loan funds, we will help alleviate the financial burden of local small business owners who are struggling due to COVID-19, even if only a little.”