[Asia Economy Yeongnam Reporting Headquarters, Reporter Jucheol In] Gyeongsangnam-do announced on the 19th that it will provide 300 billion KRW in loans from small business policy funds to support small business owners in the province who are struggling due to the suspension of phased daily recovery.
This year, the small business policy fund has been increased by 100 billion KRW from last year's 200 billion KRW. The guarantee fees for all policy funds will also be supported at 50-100% for one year to alleviate the financial burden on small business owners.
Of the total loan amount, the additional 100 billion KRW will be provided as a ‘Temporary Pause Special Fund’ available to all credit ratings (grades 1 to 10). The loan conditions are 10 million KRW per business, with a 1-year grace period and 4 years of installment repayment, and full support for interest and guarantee fees for one year.
The province will also expand loan support for low-credit, low-income, and vulnerable small business owners this year. A ‘Low Credit and Low Income Fund’ has been established for small business owners with credit ratings of grade 5 or below (credit score 779 or below) or low income (annual income of 35 million KRW or less), with 5 billion KRW allocated.
The loan limit per business is 10 million KRW, with support for 2.5% interest and 0.5% guarantee fees for one year. Additionally, 25 billion KRW is allocated to the ‘Hope Do Dream Special Fund’ for socially vulnerable groups.
Socially vulnerable groups include people with disabilities, North Korean defectors, female heads of households, single parents, large families, multicultural families, small business owners with credit ratings of grade 6 or below (credit score 744 or below), and low-income (annual income of 35 million KRW or less). The loan limit is 30 million KRW, with support for 2.5% interest and 0.5% guarantee fees for one year.
A ‘Growth Finance’ fund of 20 billion KRW will be operated for small business owners who have been in business for more than three years and need funds to expand their business.
For small business owners considering purchasing their business premises, loans up to 1 billion KRW per business will be provided for purchasing self-owned business premises, with 1.0% interest support for two years on real estate collateral and credit loans.
In addition, 5 billion KRW is allocated for the ‘Startup Special Fund’ targeting startup small business owners who have received a startup education certificate through the Small Business Startup Success Ladder Support Project; 5 billion KRW for the ‘Job Creation Special Fund’ to strengthen the foundation for job creation and improve job quality; 10 billion KRW for the ‘Small Manufacturer Special Fund’ to promote manufacturing innovation and develop industries that create high added value; and 10 billion KRW to prepare for the high demand during the Chuseok holiday.
Reservations for fund consultations can be made from 9 a.m. on the 25th at the Gyeongnam Credit Guarantee Foundation. After mobile phone identity verification, applicants can reserve a consultation date and time, and visit the branch on the scheduled date with their ID and required documents.
Growth finance funds can be consulted in person starting from the 20th at the nearest NongHyup Bank or Gyeongnam Bank branch.
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