Incheon City Provides 12.5 Billion Won Loan Support for Small Business Owners... Up to 30 Million Won Per Company

Incheon City announced on the 31st that it will provide loans of the 'Hope Incheon Small Business Management Stabilization Fund' to small business owners struggling with high inflation and high interest rates.

The total loan amount is 12.5 billion KRW, with Incheon City contributing 1 billion KRW as guarantee fund and 550 million KRW for interest support. Four commercial banks that have signed credit guarantee agreements with the Incheon Credit Guarantee Foundation will handle the loans.

All small business owners in the Incheon area facing economic difficulties can receive loans up to 30 million KRW per business. The loan repayment plan consists of a 1-year grace period and a 5-year installment repayment. In the first year, Incheon City will support 2% of the loan interest, and in the 2nd and 3rd years, 1.5%. The guarantee fee remains at about 0.8%, the same as last year.

However, those who have received guarantee support from the Credit Guarantee Foundation within the last 3 months, whose total guarantee amount is 100 million KRW or more, those in restricted guarantee industries, or those subject to guarantee restrictions (such as delinquency or arrears) are excluded from eligibility.

Incheon City Hall

The application period starts from the 5th of next month and continues until all funds are exhausted. Small business owners wishing to apply for the loan can make a reservation through the Incheon Credit Guarantee Foundation website or its branches.

This year's Hope Incheon Management Stabilization Fund support will be implemented in two phases. After the first phase application closes, the second phase will begin on the 26th of next month with a loan scale of 135 billion KRW.

An official from Incheon City stated, "We will also focus on operating six customized special guarantee projects, including the principal repayment deferral project launched in January this year, intensively in the first half of the year."