Government: "100,000 Small Business Owners in Loss Compensation Blind Spots to Receive 1% Ultra-Low Interest Loans"

Minister Kwon Chil-seung Briefs on Small Business Policy Council Results
Up to 20 Million Won... Special Loan Fund Totaling 2 Trillion Won
Various Sales Decline Criteria... Applications Open from the 29th

Photo by Asia Economy DB

[Asia Economy Reporter Kim Bo-kyung] The government will provide special loans of up to 20 million won at an ultra-low interest rate of 1% to small business owners who are in the blind spots of the loss compensation system.

On the 23rd, Kwon Chil-seung, Minister of SMEs and Startups, held a Small Business Policy Council meeting at the Government Seoul Office to review and approve the 'Support Plan for Recovery of Small Businesses Affected by COVID-19' and other measures.

This plan was prepared to provide supplementary support to small business sectors indirectly affected by social distancing measures and to set the direction for small business support policies in the post-COVID-19 era.

First, a total of 2 trillion won in special loans will be provided at an ultra-low interest rate of 1% up to 20 million won to 100,000 small businesses affected among those not eligible for loss compensation due to 'personnel and facility operation restrictions' rather than 'assembly bans or business hour restrictions.'

For example, small business owners who implemented personnel and facility operation restrictions such as allowing one person per 4㎡, 8㎡, or 16㎡, limiting capacity to 30%, 50%, or 70%, or using 3/4 or 2/3 of rooms are eligible.

These are small business owners whose sales decreased due to personnel and facility operation restriction measures implemented from July 7 to September 30 and who opened their businesses before September 30.

Even within the same industry, eligibility for special loans varies depending on the social distancing stage applied by each local government, so it is necessary to check the notice window on the Small Enterprise and Market Service (SEMAS) policy fund website.

To allow as many small business owners as possible to receive loans, various criteria for sales decline have been established. If quarterly or monthly sales from July to September this year decreased compared to the same period in 2019 or 2020 even once, the business is eligible for support.

Businesses opened between June and September this year without tax retention data are included in the support regardless of sales decline.

Applications will be accepted from 9 a.m. on the 29th through the SEMAS policy fund website. To disperse simultaneous access to the application system, a five-day rotation system will be implemented during the first week, but from the 4th of next month, applications will be accepted regardless of the day of the week.