Annual interest rate 1.5%, up to 150 million KRW... 1-year grace period, 4-year equal installment repayment... Applications accepted from February 13 to 29
Gangbuk-gu, Seoul (Mayor Lee Soon-hee) is recruiting the first round of recipients for 2024 from the 13th to the 29th for the ‘Small and Medium Enterprise Development Fund Loan Support Project,’ which provides loans of up to 150 million KRW at an annual interest rate of 1.5% to small and medium-sized enterprises (SMEs) and small business owners in the area.
The ‘Gangbuk-gu Small and Medium Enterprise Development Fund Loan Support Project’ is a program that lends facility and operating funds using the district’s own budget fund to foster SMEs and small business owners within the region.
Eligible applicants are SMEs and small business owners who have completed business registration in Gangbuk-gu and possess collateral capability (real estate, credit guarantee) according to bank credit regulations.
Applicants with less than six months of business registration or whose business location is their residence, as well as businesses such as precious metal brokerage, pubs, and non-store retail businesses, are excluded from eligibility.
Until last year, the district recruited loan support recipients quarterly (four times a year), but from this year, applications will be accepted three times a year (March, July, November). The loan support scale per round is 1 billion KRW, with a total of 3 billion KRW planned to be loaned to SMEs and small business owners this year.
The loan interest rate, which was temporarily reduced to 0.8% per annum due to COVID-19 in 2022-2023, will be restored to 1.5% per annum starting this year. The loan limit is up to 150 million KRW with real estate collateral and up to 50 million KRW with a credit guarantee. Loans must be repaid with a one-year grace period followed by equal monthly installments over four years.
Applicants wishing to receive loan support should visit the Gangbuk-gu Regional Economy Division (7th floor, 1035 Hancheon-ro, Gangbuk-gu) from February 13 to 29 with the required documents, including the loan application form, business registration certificate, local tax (national tax) payment certificate, and value-added tax standard certificate.
However, before applying, applicants must confirm the collateral appraisal value at Shinhan Bank Gangbuk-gu Office Branch (1st floor, Gangbuk-gu Office, 13 Dobong-ro 89-gil, Gangbuk-gu). The collateral appraisal period is from February 13 to 23.
In December last year, the district amended the ordinance (Seoul Gangbuk-gu Small and Medium Enterprise Development Fund Establishment and Operation Ordinance Enforcement Rules). Starting this year, if the number of applicants exceeds the loan scale, priority will be given to companies recognized as promising, such as those selected as Gangbuk-gu specialized enterprises, manufacturers, companies designated as key management targets under Article 11, Paragraph 1 of the Act on Emergency Preparedness, exporters, venture companies or promising SMEs, companies led by youth as defined in Article 2, Paragraph 1 of the Seoul Gangbuk-gu Youth Basic Ordinance, companies for the disabled (as defined in Article 2, Paragraph 2 of the Act on Promotion of Activities of Disabled Enterprises), companies providing side jobs to low-income groups, and women-owned companies (as defined in Article 2, Paragraph 1 of the Act on Support for Women-owned Enterprises).
The final decision on support will be made through the review by the Gangbuk-gu Small and Medium Enterprise Development Fund Operation Deliberation Committee. Depending on the review results, the loan amount may be adjusted within the collateral appraisal value or applicants may be excluded from eligibility. For detailed information on required documents, loan conditions, and other matters, please check the Gangbuk-gu website.
Lee Soon-hee, Mayor of Gangbuk-gu, said, “Gangbuk-gu supports the growth and management of SMEs and small business owners by providing loans through the fund. We will continue to do our best to strengthen the competitiveness of SMEs and establish a foundation for sustainable self-reliance in the district.”
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
