Overcoming the COVID-19 Economic Crisis, Promoting Business Management Stabilization
Loan Scale of 30 Billion Won, 3% for General, Up to 4% for Preferred Companies
[Asia Economy Honam Reporting Headquarters, Reporter Heo Seon-sik] Gwangyang City, Jeonnam announced that it will provide interest subsidy funds for loans to support the resolution of management difficulties caused by COVID-19 and to stabilize the management of local small and medium-sized enterprises (SMEs).
Following last year's interest subsidy support of 1.1 billion KRW to 156 companies, this year the city plans to actively respond to the increased demand for loan support due to the rise in industrial complex sales rates by providing 900 million KRW in interest subsidy funds with a total loan scale of 30 billion KRW.
The application period is from January 20 until funds are exhausted. Companies that have their main office and business site in Gwangyang City and have been operating for more than two years in sectors such as ▲manufacturing ▲transportation and warehousing ▲information and communication ▲waste and environmental restoration services are eligible to apply.
The types of support include four areas: general operating funds, technology development funds, facility modernization funds, and startup funds. The maximum loan limit per company is 300 million KRW, and an interest subsidy of 3% (4% for preferential companies such as women-owned businesses) on the loan amount is provided.
Loan repayment is a lump sum after a two-year grace period. Loans can be obtained through 13 branches of 7 financial institutions that have agreements with the city. Companies wishing to receive funding should submit a loan application including a business plan and financial statements for the past two years to the city.
Lee Hwa-yeop, Director of the Regional Economy Division, said, “We hope this will help stabilize the management of SMEs struggling with financial difficulties due to the prolonged COVID-19 pandemic,” and added, “We will continue to prepare various corporate support measures to ensure mutual growth between the city and local companies.”
Asia Economy Honam Reporting Headquarters, Reporter Heo Seon-sik hss79@asiae.co.kr
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