Eunpyeong-gu, Small Business Development Fund Loans and Special Credit Guarantee Support

Up to 300 Million KRW per Company for SMEs and Small Business Owners... Interest Rate at 0.8% per Year... Promoting Business Stability and Regional Economic Revitalization

[Asia Economy Reporter Park Jong-il] Eunpyeong-gu (Mayor Kim Mi-kyung) announced that it will provide loans from the Small and Medium Business Development Fund totaling 5 billion KRW to support small and medium-sized enterprises (SMEs) and small business owners who have been pushed into crisis due to COVID-19.

The support targets SMEs and small business owners who have their business premises in Eunpyeong-gu and have been registered for more than one year. Excluded industries include lodging and food service, bars, tobacco and liquor wholesale, real estate, finance, and insurance.

The loan interest rate is 0.8% per annum and will be extended to existing borrowers from last year. Repayment options include a 2-year grace period followed by 2 years of equal installment repayments, or a 1-year grace period followed by 3 years of equal installment repayments. The loan limit is up to 300 million KRW for SMEs and 100 million KRW for small business owners. Support is provided only to companies with collateral capability such as real estate or credit guarantees.

Businesses wishing to apply for loans must visit the Eunpyeong-gu Office Job and Economy Division to submit all application documents in person. Application forms and business plans can be downloaded from the announcement on the Eunpyeong-gu Office website. Supporting documents include business registration certificates and financial plans. The loan program will continue until the budget is exhausted.

The district also supports recommendations for special credit guarantees with a total guarantee scale of 20 billion KRW. The target includes small business owners lacking collateral and lodging and food service operators. At the Seoul Credit Guarantee Foundation Eunpyeong branch, special credit guarantees can be applied for up to 50 million KRW. With a separate review, the limit can be increased up to 200 million KRW. Loans can be applied for at commercial banks using the credit guarantee certificate. However, industries such as entertainment bars, liquor wholesale, and real estate are excluded from the guarantee.

On the 20th, the first phase of the 500 billion KRW scale ‘4-Mu Safe Finance’ support project began. This plan aims to provide practical support to alleviate the financial difficulties of small business owners and aid in daily recovery. The ‘4-Mu Safe Finance’ was a Seoul city financial support measure that was exhausted early last year; ‘4-Mu’ stands for no interest, no guarantee fee, no collateral, and no paper documents. Inquiries related to special credit guarantee support and Seoul’s ‘4-Mu Safe Finance’ can be made at the Seoul Credit Guarantee Foundation Eunpyeong branch.

For other questions regarding the Small and Medium Business Development Fund, please refer to the district website or contact the Small Business Team at the Eunpyeong-gu Office Job and Economy Division.