Daegu City, 100 Billion Won Special Guarantee Support for Small Business Owners

[Asia Economy Yeongnam Reporting Headquarters Reporter Dongguk Lee] Daegu City has prepared a supplementary budget to additionally expand support with 100 billion KRW scale ‘Small Business Daegu Hope Plus Special Guarantee’ and 400 billion KRW scale management stabilization funds.

Earlier this year, the city announced a guarantee support plan worth 1.246 trillion KRW for economic quarantine.

As the prolonged COVID-19 pandemic and the government’s strong quarantine measures require, to facilitate cash flow for small business owners suffering from dual hardships due to business damage and credit deterioration, Daegu Credit Guarantee Foundation will expand guarantee supply and intensively support 100 billion KRW scale ‘Small Business Daegu Hope Plus Special Guarantee’ for small and medium enterprises and small business operators in financial blind spots starting from the 9th.

The ‘Hope Plus Special Guarantee’ was prepared by Daegu City to support small and medium enterprises and small business owners who cannot receive the government’s special guarantee for low to medium credit small business owners, which has been in effect since the 5th.

In particular, the screening criteria have been significantly relaxed, and regardless of existing guarantee amounts and credit evaluation scores supported by funds (Korea Credit Guarantee Fund, Korea Technology Finance Corporation) and the foundation, any business operating in Daegu City can apply.

Also, linked with Daegu City’s management stabilization funds, users can benefit from an ultra-low interest rate by receiving 1.8% of the loan interest supported for one year, and the guarantee fee rate is also preferentially applied (0.3%~0.6%), allowing support at a fixed annual rate of 0.8% within a limit of 10 million KRW after screening by Daegu Credit Guarantee Foundation.

Furthermore, as the management stabilization funds supported at a scale of 1 trillion KRW this year were rapidly consumed, with 98% of the funds exhausted as of the end of June, the city will additionally expand the support scale of management stabilization funds by 400 billion KRW and provide support from the 9th for start-up and growth companies and small business owners with high demand for funds.

The city plans to allocate 100 billion KRW of the expanded management stabilization funds to the government’s ‘special guarantee for low to medium credit small business owners’ and ‘Hope Plus Special Guarantee’ to reduce the burden on companies by supporting interest at 1.8% for one year.

Companies wishing to receive support for Hope Plus Special Guarantee and management stabilization funds can apply by visiting a nearby commercial bank in their business location or by making a consultation reservation with Daegu Credit Guarantee Foundation.

Mayor Kwon Young-jin of Daegu said, “I hope that this Hope Plus Special Guarantee and management stabilization funds will be of some help to small and medium enterprises and small business owners in financial blind spots who are experiencing financial difficulties due to decreased sales and credit deterioration caused by the prolonged COVID-19 pandemic.”