Chungnam Supports Small Business Owners with 1.5% Low-Interest 'Somang Loan'

[Asia Economy (Hongseong) Reporter Jeong Il-woong] Chungnam Province is launching low-interest support for local small businesses and small merchants.

On the 14th, the province announced that Chungnam Governor Yang Seung-jo, Kookmin Bank Chungcheong Regional Sales Group Head Yoon Do-won, Nonghyup Bank Chungnam Sales Headquarters Head Yeo Un-cheol, KEB Hana Bank Chungcheong Sales Group General Manager Lee Seong-jin, Shinhan Bank Daejeon Chungnam Headquarters Head Song In-jo, and Chungnam Credit Guarantee Foundation Director Yoo Seong-jun met to sign a business agreement for the ‘Somang Loan Special Guarantee for Supporting Daily Recovery.’

The Somang Loan consists of a special contribution of 100 billion KRW from four financial institutions, loan interest rate reductions, and the province’s interest subsidy at a 2% level.

The guarantee amount per company is up to 30 million KRW for new guarantee applicants and up to 20 million KRW for existing guarantee holders.

The support targets small businesses and small merchants operating business sites in Chungnam who are experiencing business difficulties due to COVID-19, including general businesses and those in restricted gathering industries.

This Somang Loan can also be additionally received by companies that have previously received small merchant funds or Somang Loans and have exceeded the special guarantee limit.

However, entertainment bars, adult PC rooms, gambling-related industries, and similar sectors are excluded from eligibility.

The loan terms include a one-year grace period with lump-sum repayment, and the actual interest rate burden for companies is within 1.5% for general industries, with a guarantee issuance fee within 0.5%.

Loan applications can be made starting from the 15th at the Chungnam Credit Guarantee Foundation headquarters and branches, as well as at the branches of the four banks.

For more detailed information about the Somang Loan, refer to the announcements and notices on the provincial website or contact the Chungnam Credit Guarantee Foundation.

Meanwhile, last year, the province supported 5,429 cases with 100 billion KRW in the first round and 5,028 cases with 100 billion KRW in the second round through the Somang Loan.