Special Credit Guarantee of 25 Billion KRW, 4 Billion KRW from SME Development Fund
Supporting SMEs and Small Business Owners' Growth... Interest Rates Lower Than Market Rates Applied
Park Gang-su, Mayor of Mapo-gu, "We Will Be a Strong Partner for SMEs and Small Business Owners"
Mapo-gu (District Mayor Park Gang-su) has launched a low-interest loan support program to assist small and medium-sized enterprises (SMEs) and small business owners in the area who are struggling due to high interest rates and inflation.
This year, Mapo-gu has prepared a total loan fund of 29 billion KRW, including 25 billion KRW for special credit guarantees and 4 billion KRW for the SME Development Fund, to promote new growth for SMEs and small business owners and revitalize the local economy.
The special credit guarantee program supports small businesses and small business owners facing management difficulties due to economic recession and rising interest rates by enabling them to receive loans at low interest rates. It is characterized by lowered application requirements for those lacking collateral.
The support targets any business located in Mapo-gu regardless of industry. Businesses can use up to 50 million KRW in operating funds unsecured for up to five years. The interest rate is 3.59% to 3.79% per annum (3-month CD variable rate). However, industries restricted from loan support, such as entertainment bars and gambling facilities, are excluded.
The first phase of support is for small businesses and small business owners affiliated with related local organizations (professional groups), with applications accepted until May 31. Those wishing to apply for the special credit guarantee should apply through their affiliated organization and visit Mapo-gu Office to submit the required documents as guided.
Small businesses and small business owners not affiliated with any organization can apply during the second phase starting in June.
Additionally, Mapo-gu is simultaneously conducting the SME Development Fund loan program to foster the growth and stable management of local SMEs.
The SME Development Fund loan support targets SMEs registered with factories in Mapo-gu, those engaged in manufacturing-related knowledge service industries, and social enterprises.
The loan interest rate is 1.0% per annum, and collateral such as real estate or credit guarantees is required for the loan.
For more details, please refer to the announcement posted on the Mapo-gu Office website under Notices & Announcements.
Park Gang-su, Mayor of Mapo-gu, said, “We hope this loan support program will provide some relief to SMEs and small business owners facing financial difficulties,” and added, “Mapo-gu will continue to actively support SMEs and small business owners, the backbone of the local economy, as a reliable partner.”
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