Eunpyeong-gu, 2024 Small Business Development Fund Loan Support

Annual 1.5% Low-Interest Loans for Registered SMEs and Small Business Owners... Special Credit Guarantees Recommended for Small Business Owners with Insufficient Collateral

Eunpyeong-gu (District Mayor Kim Mi-kyung) announced that it will implement the "2024 Small and Medium Enterprise Development Fund Loan Support" to help stabilize business management for small and medium-sized enterprises (SMEs) and small business owners in the area who are struggling in the high-interest rate era.

The support targets SMEs and small business owners who have business establishments and business registrations in Eunpyeong-gu. Depending on the size of the business, SMEs can receive up to 100 million KRW, and small business owners up to 50 million KRW. However, industries such as lodging and restaurants, bars, tobacco and liquor wholesale, real estate, finance and insurance, and other sectors that promote luxury, indulgence, or speculation are excluded.

The loan interest rate is 1.5% per annum, with repayment terms of either a 2-year grace period followed by 2 years of equal installments or a 1-year grace period followed by 3 years of equal installments. To qualify for the loan, collateral capability according to bank credit regulations, such as real estate collateral or credit guarantees, is required.

The total loan support scale for this year is 5 billion KRW, and the program operates year-round until the loan funds are exhausted.

Businesses wishing to apply for the Small and Medium Enterprise Development Fund loan must first undergo collateral evaluation through the "Shinhan Bank Eunpyeong-gu Office Branch," then complete the application form and business plan posted on the Eunpyeong-gu website announcement, and submit these along with other supporting documents in person to the Job and Economy Division of Eunpyeong-gu Office.

Additionally, small business owners in lodging and restaurant industries or those lacking collateral can apply for a "Special Credit Guarantee" with a limit of up to 50 million KRW (up to 200 million KRW upon separate review) at the Seoul Credit Guarantee Foundation Eunpyeong Branch.

The "Special Credit Guarantee" is a system where the Seoul Credit Guarantee Foundation provides credit guarantees to small business owners using funds contributed by Eunpyeong-gu and commercial banks. Small business owners lacking collateral can receive a credit guarantee certificate through screening and then apply for loans at commercial banks. For more details, inquiries can be made to the Seoul Credit Guarantee Foundation Eunpyeong Branch.

Kim Mi-kyung, Mayor of Eunpyeong-gu, stated, "I hope this loan support will help stabilize the management of local SMEs struggling with financial difficulties," and added, "We will continue to prepare various support policies to stabilize the local economy."