Incheon City will provide policy funds worth 47.5 billion KRW to support small business owners, including vulnerable groups and young entrepreneurs, who are struggling amid high interest rates and high inflation economic conditions.
Applications will be accepted from the 19th for the Hope Incheon Small Business Management Stabilization Fund (Phase 3) of 22.5 billion KRW, the Vulnerable Group Hope Dream Special Guarantee of 10 billion KRW, and the Young Entrepreneur Special Guarantee of 15 billion KRW.
In addition to the small business management stabilization funds that began in phases since April, this policy fund includes additional projects aimed at financially marginalized individuals and socially disadvantaged groups who are feeling greater economic hardship, as well as young entrepreneurs facing difficulties in securing initial business capital.
In particular, the special guarantees for vulnerable groups and young entrepreneurs allow the management stabilization funds, which were previously operated only with variable interest rates under high interest rate conditions, to offer fixed interest rates as well, tailored to the repayment plans of small business owners.
A total of 3.7 billion KRW in guarantee funds will be contributed to promote this project, and the city will support interest costs for three years.
The small business management stabilization fund has the same support conditions as the Phase 1 and 2 funds. Hana Bank solely contributes 1.5 billion KRW in guarantee funds, and the city supports interest costs for three years after the loan.
The special guarantee for vulnerable groups provides loans up to 20 million KRW to financially marginalized individuals, including those with credit ratings of 6 or lower or simplified taxpayers, as well as socially disadvantaged small business owners such as persons with disabilities, basic livelihood security recipients, and single-parent families.
Applications can be made at Shinhan, NongHyup, Kookmin, and Hana Banks. Loan conditions include a one-year grace period followed by monthly installment repayments over four years, with partial support (1.5%) of the loan interest for the first three years. The guarantee fee is set at 0.5%, the lowest level to reduce the burden on vulnerable small business owners.
The young entrepreneur special guarantee allows small business owners who are representatives aged 39 or younger and within five years of starting their business to borrow up to 30 million KRW. The handling banks and loan conditions are the same as those for the vulnerable group special guarantee, but the guarantee fee is 0.8%.
However, those who have already received guarantee support from the Incheon Credit Guarantee Foundation within the past three months, or those in restricted guarantee industries (such as gambling, entertainment, leisure, tobacco-related industries), or those subject to guarantee restrictions (such as delinquency or arrears) are excluded from eligibility.
Small business owners wishing to apply can make an online reservation and apply through the Incheon Credit Guarantee Foundation website. If online reservation is difficult, they can visit the branch of the Incheon Credit Guarantee Foundation in the area where their business is located to make a reservation.
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