Gwangju City 'Special Guarantee Loan Support for Small Business Owners' Consultation Application

Applications Accepted from Next Month 1st at Credit Guarantee Foundation Website and Bank Branch Counters

[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] Gwangju Metropolitan City announced on the 28th that, to resolve inconveniences such as temporary congestion and waiting times for consultations regarding the ‘COVID-19 Crisis Overcoming Special Guarantee Loan Support for Small Business Owners,’ applications will be accepted from the 1st of next month through the Gwangju Credit Guarantee Foundation website and dedicated consultation counters at each branch.

The ‘Special Guarantee Loan Support’ project is a program announced by Mayor Lee Yong-seop on the 21st as the 11th livelihood stabilization measure, providing small business owners and self-employed individuals with three no-benefit supports: no collateral, no interest, and no guarantee fees.

Initially, applications and consultations were to be accepted at each loan bank branch, but due to the sudden influx of local small business owners causing COVID-19 quarantine issues and long consultation waiting times, inconveniences for loan applicants were anticipated, leading to a change in the application method.

Also, to prevent cases where many small business owners flock to certain banks and are excluded from loan support due to the depletion of guarantee funds (100 billion KRW), consultations will be accepted through the Gwangju Credit Guarantee Foundation website first, and loans and consultations will be conducted in order.

The Gwangju Credit Guarantee Foundation plans to send text messages with the visit date and available banks for consultation by distributing the dates according to the order of applications received on the website.

Previously, the second round of the three no-benefit loan support project, which was supported last year, ended after the 50 billion KRW guarantee fund was exhausted in just one day of applications.

Accordingly, local small business owners and self-employed individuals wishing to apply for the ‘Special Guarantee Loan Support’ should first access the Gwangju Credit Guarantee Foundation website from the 1st of next month to apply for consultation.

If internet use is difficult, applicants can visit the foundation’s branches to apply. Since identification verification is required, applications cannot be made by phone.

Loans are available at four banks?Gwangju Bank, NongHyup Bank, Shinhan Bank, and Hana Bank?excluding Kookmin Bank and Woori Bank, which are unable to participate in this support project due to bank circumstances. Applicants should first apply for consultation at the Credit Guarantee Foundation from the 1st of next month, then visit the Credit Guarantee Foundation or each bank branch according to the text message guidance to receive consultation and apply for loans.

Park Jeong-hwan, Director of the City’s Job and Economy Office, said, “As the regional spread of COVID-19 continues and social distancing quarantine measures are prolonged, the damage to local small business owners and self-employed individuals is increasing. We hope this support will provide at least some help to small business owners in the region during these difficult times.”