Songpa-gu Expands Small Business Loan Support to 20 Billion Won

Songpa-gu Significantly Expands Support, Increasing by 4.4 Billion KRW from Last Year’s 15.6 Billion KRW Scale... Up to 50 Million KRW Without Collateral

Applications Open from June 1. Until Guarantee Funds Are Exhausted... Up to 50 Million KRW per Business

Seokangseok, Mayor of Songpa District

Songpa-gu (Mayor Seo Gang-seok) is implementing the ‘Songpa-type Unsecured Loan Support’ worth 20 billion KRW to assist small businesses and small merchants facing financial difficulties.

This support amount is 4.4 billion KRW larger than last year’s 15.6 billion KRW.

Mayor Seo Gang-seok explained the background, saying, “With the rapid price increases following COVID-19, the number of small merchants struggling with management has increased, so we have significantly expanded the loan support scale.”

To this end, the district secured a total guarantee scale of 20 billion KRW by contributing 1.6 billion KRW to the Seoul Credit Guarantee Foundation based on cooperation with Woori Bank, Shinhan Bank, and Hana Bank, enabling support on a greatly expanded scale.

The target beneficiaries are small businesses and small merchants registered and operating in Songpa-gu. They can consult at the Seoul Credit Guarantee Foundation Songpa branch, submit an application, and then visit designated branches of Woori Bank, Shinhan Bank, or Hana Bank.

The support period is from June 1 until the guarantee funds are exhausted.

After screening, up to 50 million KRW per business is available. For new guarantees, only an annual guarantee fee rate (credit guarantee commission rate) of 0.8% is charged, and up to 100% of the loan amount is guaranteed.

Additionally, the district is also committed to strengthening small merchants’ competitiveness through free consultations with management advisors, operation of the Small Business Comprehensive Support Center, and deployment of visiting Small Business Hope Planners.

Mayor Seo Gang-seok stated, “I hope this loan support will be a small help to small merchants in difficult situations,” and added, “We will continue to implement support projects that serve as a strong pillar for small merchants so that the local economy can regain vitality.”