Gangnam-gu, Songpa-gu, Yangcheon-gu, Dongjak-gu, Seongbuk-gu, Gangbuk-gu, Nowon-gu and 25 other autonomous districts provide 0.8~1.5% low-interest loans to support financing for SMEs and small business owners
As the economy struggles to recover, the government has decided to provide low-interest loans totaling 19.4 trillion won to small and medium-sized enterprises (SMEs) facing a high-interest rate crisis.
Accordingly, Seoul's autonomous districts are also making efforts to offer low-interest loans ranging from 0.8% to 1.5%.
This is expected to be a boon for small merchants suffering from consumption stagnation.
Autonomous districts in Seoul, such as Gangnam-gu and Yangcheon-gu, will support loans for SMEs and small business owners this year.
Gangnam-gu to Provide 12 Billion Won in Loans to SMEs and Small Business Owners in the First Half of the Year
On-site applications at the district office from February 15 to 21... Support up to 200 million won for corporations and 50 million won for individual business owners at a 2% low fixed interest rate
Gangnam-gu (District Mayor Jo Seong-myeong) will implement a loan support project worth 12 billion won in the first half of the year to assist SMEs and small business owners struggling due to economic recession and rising interest rates.
The support targets businesses located in Gangnam-gu that have been registered for more than one year. The loan can be used for operational, facility, or technology development funds, with a loan limit of 200 million won for corporate businesses and 50 million won for individual business owners. The interest rate is a fixed 2% per annum, with a one-year grace period and four years of equal installment repayments. However, businesses currently repaying the Gangnam-gu SME development fund, those with national or local tax arrears, businesses that are temporarily closed or closed, entertainment bars, restaurants with exclusive areas over 330㎡, lodging businesses, and other restricted industries are excluded.
The application period is from February 15 to 21. Interested businesses must prepare a loan application form, business plan, and other documents and visit the loan reception desk on the basement level 1 of the district office main building to apply in person. Corporate applicants must visit one of eight Shinhan Bank branches for pre-collateral consultation before applying. Individual business owners can check eligibility through the ‘Self-Diagnosis Checklist’ available on the district office website. For more details, visit the district office website or contact the Regional Economy Division.
Jo Seong-myeong, Mayor of Gangnam-gu, said, “With a total of 108,588 businesses, the largest number in Seoul, we hope this loan support project will help stabilize their management and ease financial difficulties. We will continue to provide multifaceted support to strengthen the competitiveness of SMEs and small business owners, which are the foundation of the local economy.”
Songpa-gu to Provide 12 Billion Won This Year... 1.5% Annual Low-Interest Loans
Songpa-gu (District Mayor Seo Gang-seok) will implement a large-scale loan support program totaling 12 billion won starting in February to alleviate management difficulties and stabilize employment for local SMEs facing financial challenges.
The district has operated a separate fund to support local SMEs since 1993. In 2018, it signed a business agreement with financial institutions to expand the fund size more than threefold and secure financing channels, striving for regional economic development.
Last year, 33 SMEs received loans totaling 5.4 billion won, and 100 million won was provided as interest subsidies to reduce the interest burden on companies.
This year's loan support targets SMEs registered in Songpa-gu for more than six months with sales records and collateral capacity under bank credit regulations. Loans can be supported up to 200 million won per company with a two-year grace period and three years of equal installment repayments.
Loan funds must be used solely for business management purposes such as working capital, facility funds, and technology development funds, and cannot be used for personal purposes like loan repayment.
The loan support is divided into two categories based on schedule and interest rates: the SME Development Fund and Cooperation Fund. The SME Development Fund, currently recruiting 4 billion won since February 1, offers a popular 1.5% annual low-interest loan.
The 8 billion won Cooperation Fund will be announced in the second half of the year, with the district supporting up to 2% of the interest costs incurred when companies borrow funds depending on collateral. However, companies currently repaying or within six months of repaying the Songpa-gu SME Development Fund, those with national or local tax arrears, and excluded industries are not eligible.
Collateral capacity can be checked through pre-consultation at the Woori Bank Songpa-gu Office Branch on the first floor of the district office main building. Applications must be submitted in person to the Economic Promotion Division on the 8th floor of Songpa-gu Office with required documents. For more details, check the district website’s ‘Notices and Announcements’ section.
Seo Gang-seok, Mayor of Songpa-gu, said, “We aim to provide practical help to local SMEs struggling with financing through low-interest loans. We will continue to implement various support measures at the district level to help SMEs and small business owners, the backbone of the local economy, overcome difficult times.”
Yangcheon-gu to Provide 5 Billion Won in SME Development Funds This Year... Lowest Interest Rate Among Autonomous Districts at 0.8%
Expanded to 3 Billion Won in the First Half Considering High Loan Demand Early in the Year... Applications Accepted Until February 23
Up to 300 million won for manufacturing, up to 80 million won for other wholesale and retail businesses, loan interest rate at 0.8%
Yangcheon-gu (District Mayor Lee Gi-jae) will provide 5 billion won in ‘SME Development Fund’ loans to stabilize the management of SMEs and small business owners struggling with high inflation and interest rates, accepting applications for the first half loan support until February 23.
This year, the total loan amount for the SME Development Fund is 5 billion won, with 3 billion won allocated for the first half and 2 billion won for the second half. Unlike last year’s 2.5 billion won per half, the first half loan amount has been flexibly increased to reflect higher loan demand at the start of the year.
The loan interest rate is the lowest among Seoul’s autonomous districts at 0.8% per annum, maintaining the reduced rate from 1.5% during the COVID-19 period without any increase this year to ease the burden on SMEs and small business owners.
Eligible applicants are SMEs and small business owners with business locations in Yangcheon-gu and business registration for more than six months as of the announcement date (January 31). Tobacco wholesale and retail, liquor wholesale and retail, restaurants, real estate, and financial industries are excluded.
The loan limit is up to 300 million won for manufacturing businesses and up to 80 million won for other wholesale and retail businesses. Repayment terms include a two-year grace period and three years of equal installment repayments. Loan funds must be used only for working capital, facility funds, or technology development funds.
Applicants must submit a loan application form, business plan, business registration certificate, national and local tax payment certificates, and recent financial statements or sales verification documents in person to the Job and Economy Division office by February 23. For more details, refer to the district website’s notices and announcements.
Applicants for the first half SME Development Fund loans will be finalized after review by the Fund Operation Committee and can receive loans from mid-March through Woori Bank Yangcheon-gu Office Branch. The second half loan support (2 billion won) is planned for July to August.
Since its establishment in 1993 with an initial 1 billion won contribution from the district, the Yangcheon-gu SME Development Fund has supported 1,015 cases totaling 70.4 billion won, contributing to easing management difficulties for local SMEs and small business owners.
Lee Gi-jae, Mayor of Yangcheon-gu, said, “We hope this loan support will help stabilize the management of SMEs and small business owners facing difficulties. We will continue to discover and implement highly effective management support policies to revitalize the local economy.”
Dongjak-gu to Support SMEs with 3 Billion Won
Dongjak-gu (District Mayor Park Il-ha) will provide a total of 3 billion won in ‘SME Development Fund Loans’ to assist local SMEs and small business owners struggling with high inflation and interest rates amid economic downturn.
First, the district will accept applications for the first round of SME Development Fund loans worth 2 billion won until the 20th.
Eligible applicants are SMEs and small business owners operating in Dongjak-gu for more than six months. Financial and insurance industries, luxury and entertainment businesses, and restaurants with five or more employees are excluded.
Loan support limits are up to 200 million won per company for manufacturing and construction industries, and up to 50 million won for other wholesale and retail small businesses.
Loan funds can be used for rent, facility improvements, and labor costs, with a fixed interest rate of 1.5% per annum and a repayment period selectable within five years.
Applications require prior consultation at Kookmin Bank Dongjak-gu Office Branch or Seoul Credit Guarantee Foundation Dongjak Branch, followed by submission of a loan application form, business plan, and other documents to the Economic Policy Division (9th floor, Yuhan Yanghang Building).
Submission forms and documents can be found on the district website under notices and announcements. For further inquiries, contact the Dongjak-gu Economic Policy Division.
Loan approval will be decided by the Dongjak-gu SME Development Fund Operation Committee.
Additionally, a second round of SME Development Fund loans worth 1 billion won is planned for July.
The district will also collaborate with the Seoul Credit Guarantee Foundation and banks to establish a 25 billion won fund for ‘special guarantees and interest support.’
Within the first year after loan disbursement, companies can receive interest-free loans up to 70 million won, with the district covering all loan interest.
Park Il-ha, Mayor of Dongjak-gu, said, “We hope this loan support will help alleviate financial difficulties for local SMEs and small business owners facing management challenges. We will continue to implement various support projects to revitalize the local economy.”
Seongbuk-gu to Support SMEs with 3 Billion Won This Year
Seongbuk-gu, Seoul (District Mayor Lee Seung-ro) will launch the ‘2024 First Half Seongbuk-gu SME Development Fund Loan Support Project’ to stabilize management for local SMEs and small business owners struggling to secure business funds amid high inflation and interest rates.
The total fund support this year is 3 billion won, split evenly with 1.5 billion won in the first half and 1.5 billion won in the second half.
Eligible applicants are SMEs and small business owners operating in Seongbuk-gu with business registration for more than three months. Loans are available to companies able to provide collateral under Woori Bank loan terms or obtain guarantees from the Seoul Credit Guarantee Foundation. However, pubs, restaurants with exclusive areas over 300㎡, real estate, financial and insurance industries, lodging, liquor wholesale, precious metals, gaming, luxury and speculative businesses are excluded.
Loans can be up to 100 million won with collateral (real estate, etc.) or up to 50 million won with credit guarantees, for facility, operational, or technology development funds. The interest rate is 1.2% per annum, with a one-year grace period and three years of equal principal and interest repayments.
Applications for the first half are accepted from February 14 to March 6. Applicants must download application forms (loan application, business plan, business registration copy, etc.) from the Seongbuk-gu website notices and announcements, and receive pre-consultation at Woori Bank Seongbuk-gu Office Branch for collateral loans or Seoul Credit Guarantee Foundation Seongbuk Branch for credit loans before applying in person at the 8th floor Regional Economy Division of Seongbuk-gu Office.
Lee Seung-ro, Mayor of Seongbuk-gu, said, “This SME Development Fund loan support is designed to respond to the management crisis of local small business owners and strengthen the social safety net. We sincerely hope it will serve as a stepping stone for our SMEs and small business owners struggling with high inflation and interest rates.”
Gangbuk-gu 2024 First Round ‘SME Development Fund Loan Support’
1.5% Annual Interest Rate, Up to 150 Million Won... One-Year Grace Period, Four Years Equal Installment Repayment... Applications Accepted February 13?29
Gangbuk-gu, Seoul (District Mayor Lee Soon-hee) is recruiting applicants from February 13 to 29 for the 2024 first round of the ‘Gangbuk-gu SME Development Fund Loan Support Project,’ offering loans up to 150 million won at an annual interest rate of 1.5% to local SMEs and small business owners.
The ‘Gangbuk-gu SME Development Fund Loan Support Project’ provides loans from the district’s own budget to support facilities and operating funds for local SMEs and small business owners.
Eligible applicants are SMEs and small business owners registered in Gangbuk-gu who have collateral capacity under bank credit regulations (real estate, credit guarantees). Businesses registered for less than six months, home-based businesses, precious metal brokerage, pubs, and non-store retail businesses are excluded.
Until last year, the district recruited loan recipients quarterly (four times a year), but from this year, applications will be accepted three times (March, July, November). Each round will provide 1 billion won in loans, totaling 3 billion won for the year.
The temporarily reduced loan interest rate of 0.8% per annum during 2022?2023 due to COVID-19 will be restored to 1.5% this year. The loan limit is up to 150 million won with real estate collateral and up to 50 million won with credit guarantee collateral. Loans must be repaid with a one-year grace period followed by four years of equal monthly installments.
Applicants must submit a loan application form, business registration certificate, national and local tax payment certificates, and VAT standard certificates to the Regional Economy Division (7th floor, 1035 Hancheon-ro, Gangbuk-gu). Before applying, applicants must verify collateral appraisal at Shinhan Bank Gangbuk-gu Office Branch (1st floor, Gangbuk-gu Office, 13 Dobong-ro 89-gil, Gangbuk-gu) between February 13 and 23.
In December last year, the district amended its ordinance (Seoul Gangbuk-gu SME Development Fund Establishment and Operation Ordinance Enforcement Rules) to prioritize applicants if the number of applicants exceeds the loan fund. Priority will be given to companies recognized as promising, such as Gangbuk-gu specialized companies, manufacturers, companies designated as key management targets under Article 11(1) of the Emergency Preparedness Act, exporters, venture or promising SMEs, companies led by youth as defined in the Seoul Gangbuk-gu Youth Basic Ordinance Article 2(1), companies owned by persons with disabilities (as defined in the Act on Promotion of Activities of Disabled Persons), low-income employment providers, and women-owned businesses (as defined in the Act on Support for Women-owned Businesses).
Final loan approval will be decided by the Gangbuk-gu SME Development Fund Operation Review Committee. Loan amounts may be adjusted within the collateral appraisal value or applicants may be excluded. For more details on required documents and loan conditions, visit the Gangbuk-gu website.
Lee Soon-hee, Mayor of Gangbuk-gu, said, “Gangbuk-gu supports SMEs and small business owners through loans from the fund to foster and assist their management. We will continue to do our best to strengthen SMEs’ competitiveness and establish a sustainable foundation for the district.”
Nowon-gu SME and Small Business Owner Development Fund Loan Support
15 Billion Won Each in First and Second Half, Total 30 Billion Won... Increased by 1 Billion Won Compared to Last Year
Maintains Special Low Interest Rate of 1.5% Annually, Temporarily Reduced to 1.2% for One Year from Loan Execution Date... Up to 100 Million Won for SMEs, 50 Million Won for Small Business Owners, Applications Accepted Until February 23
Nowon-gu, Seoul (District Mayor Oh Seung-rok) announced the ‘2024 SME and Small Business Owner Development Fund Loan Support’ to alleviate financial difficulties for local SMEs and small business owners.
This year’s total loan amount is 3 billion won, increased by 1 billion won from last year, to be provided in two rounds of 1.5 billion won each in the first and second halves. SMEs and small business owners with business locations in Nowon-gu and business registration for more than six months as of the application date are eligible.
Funds can be used for facility, operational, and technology development purposes. Loan limits are up to 100 million won for SMEs and 50 million won for small business owners, requiring collateral capacity such as real estate or credit guarantees under bank credit regulations.
However, loans are restricted for financial and insurance industries, real estate, lodging, gambling facility management, and other industries not aligned with the fund’s purpose. Companies currently repaying the Nowon-gu SME Development Fund or with outstanding national or local taxes are also excluded.
Misuse of loan funds for purposes other than intended may result in loan recovery and retroactive application of general interest rates.
The annual interest rate remains at a special low rate of 1.5%, maintained since 2021 during the COVID-19 pandemic, to provide practical support to local businesses struggling with the prolonged triple crisis of high inflation, interest rates, and exchange rates.
Repayment options include a one-year grace period with four years of equal installment repayments or a two-year grace period with three years of equal installment repayments. For one year from the loan execution date, a special low interest rate of 1.2% will be applied.
Applicants must receive pre-consultation on collateral through banks or credit guarantee foundations and submit an application form, business plan, VAT standard certificates (2020?2023), and other preferential documentation to the Job and Economy Division on the 3rd floor of Nowon-gu Office.
Applications are accepted from February 19 (Monday) to 23 (Friday), with final recipients and loan amounts decided in March.
Application forms can be downloaded from the Nowon-gu website. For detailed inquiries, contact the Small Business Support Team of the Job and Economy Division.
Additionally, the district supports a ‘Special Low-Interest Credit Guarantee Loan for Small Business Owners’ through a joint agreement with the Seoul Credit Guarantee Foundation and commercial banks. Eligible are small businesses and small business owners registered for more than three months, with a loan limit of 100 million won.
However, similar restrictions apply regarding industry type, loan purpose, and tax arrears.
This special credit guarantee loan is available until the budget is exhausted and requires prior reservation at the Seoul Credit Guarantee Foundation Nowon Branch.
Oh Seung-rok, Mayor of Nowon-gu, said, “We hope this support will help SMEs and small business owners struggling with economic recession and high interest rates. We will actively promote various support projects for SMEs and small business owners.”
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