Incheon City Supports Small Business Owners with Ultra-Low Interest Loans at 0.8% Annual Rate

[Asia Economy Reporter Park Hyesook] Incheon City announced on the 2nd that it will provide ultra-low interest loans to small business owners in the region who are struggling due to the prolonged COVID-19 pandemic.

The fund amounts to approximately 7 billion KRW annually and supports store facility improvements or operating funds. However, businesses with overdue or delinquent payments, those currently using guarantees from the Credit Guarantee Foundation, and restricted industries such as luxury and entertainment are excluded from eligibility.

Loans are available up to a maximum of 50 million KRW per business (with a credit guarantee limit of 20 million KRW). The repayment period is 4 years, and the loan interest rate is an ultra-low 0.8% per annum (variable quarterly). The guarantee fee is 0.8% per annum, which is expected to further reduce the burden on small business owners.

The loan application period is from the 3rd until December 31 of this year, and the program may end early if the funds are exhausted.

An official from Incheon City stated, "It is expected that about 350 small business owners will benefit from the ultra-low interest loans," and added, "We hope this loan program will help small business owners who are struggling due to COVID-19."