40 Billion KRW for SME Development Fund, 30 Billion KRW for Commercial Bank Cooperation Fund; 5.7 Billion KRW Supported in First Half... Visit Applications by 19th; Loans Up to 2 Billion KRW for SMEs, 50 Million KRW for Small Business Owners
[Asia Economy Reporter Jongil Park] Guro-gu (Mayor Lee Seong) will carry out a loan support project worth a total of 7 billion KRW this year for small and medium-sized enterprises (SMEs) and small business owners.
Guro-gu announced on the 8th, "To alleviate the financial difficulties of SMEs and small business owners struggling due to the prolonged COVID-19 pandemic and to revitalize the local economy, we have prepared the 'SME and Small Business Loan Support Project' with 5.7 billion KRW in the first half and 1.3 billion KRW in the second half."
The loan support is divided into the SME Development Fund and the Commercial Bank Cooperation Fund.
The SME Development Fund is worth a total of 4 billion KRW, with an annual interest rate of 1.5%. The Commercial Bank Cooperation Fund totals 3 billion KRW, and if the loan interest rate exceeds 1.8% per year, the district office will compensate up to 1% per year of the bank's interest rate.
Both the SME Development Fund and the Commercial Bank Cooperation Fund have a grace period of 1 year and equal installment repayments over 4 years (twice a year). SMEs can borrow up to 200 million KRW, and small business owners up to 50 million KRW.
The loan targets are SMEs with 5 or more regular employees and small business owners with fewer than 5 employees who have business locations in Guro-gu and have completed business registration. For mining, manufacturing, construction, and transportation industries, the criteria are 10 or more regular employees for SMEs and fewer than 10 for small business owners. However, companies that have been registered for less than 6 months are excluded.
The SME Development Fund accepts applications until the 19th, and the Commercial Bank Cooperation Fund accepts applications for 5 days at the beginning of each month. Companies wishing to apply can download the related documents from the Guro-gu Office website, fill them out, and submit them in person to the Regional Economy Division of the district office.
A Guro-gu official said, "We hope this loan support will help SMEs and small business owners struggling with management difficulties," and added, "We will work harder to make Guro a happy place for businesses."
Guro-gu Office Regional Economy Division
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