Additional 3.6 Billion KRW Mid-Term Loans at 0.8% Annual Interest
Up to 10 Billion KRW Extra Loans with Interest Support up to 3% Annually
‘Super Speed Loans’ Guaranteed by Credit Guarantee Foundation Also Available
Seocho-gu, Seoul (District Mayor Jeon Seong-su) announced on the 6th that it will continue to provide low-interest loans and interest support in the second half of the year to help local small and medium-sized business owners who are struggling due to rising interest rates and economic recession manage their funds stably.
The district offers various support options tailored to the circumstances of individual businesses, including ▲‘Small and Medium Enterprise Development Fund Loan Support,’ the lowest interest loan among Seoul’s autonomous districts ▲‘Commercial Bank Cooperation Fund Loan Interest Support,’ which provides interest support up to 3% per annum when borrowing from a partner bank (Shinhan Bank) ▲‘Small and Medium Business Super Speed Loan,’ which connects loans regardless of collateral or credit rating.
The ‘Small and Medium Enterprise Development Fund Loan Support,’ which reopened for applications on the 5th of this month, will operate an additional 3.6 billion KRW in the second half following 2.4 billion KRW in the first half. It targets small and medium enterprises or registered manufacturing companies with their main office in Seocho-gu, offering loans up to 100 million KRW per company at an interest rate of 0.8% per annum. The loan period is five years, with repayment options of either a one-year grace period followed by four years of equal installments or a two-year grace period followed by three years of equal installments. Companies currently repaying existing loans, those that have suspended or closed operations, those with overdue local taxes or fines, and businesses in entertainment or luxury industries are excluded from support.
The ‘Commercial Bank Cooperation Fund Loan Interest Support’ is also in operation. The district and Shinhan Bank have signed an agreement to provide an additional 10 billion KRW in bank funds, with the district supporting loan interest up to 3% per annum. Loans from the commercial bank cooperation fund are available up to 200 million KRW per company, with a four-year term and repayment through one year of grace period followed by three years of equal installments.
To apply for the Small and Medium Enterprise Development Fund Loan Support and the Commercial Bank Cooperation Fund Loan Interest Support, applicants must prepare the required documents and visit the respective bank. Applications can be submitted after consultation to confirm the collateral capacity of the individual or company.
Additionally, the district is implementing the ‘Small and Medium Business Super Speed Loan Project’ worth 56.5 billion KRW through guarantees by the Seoul Credit Guarantee Foundation for companies without collateral or with unfavorable credit ratings. When borrowing from designated banks, the Seoul Credit Guarantee Foundation guarantees the financial obligations of small and medium businesses to enable loans. As of August, loans up to 70 million KRW per company are available at an interest rate in the 3% range (variable rate), with repayment terms set within five years.
Detailed information regarding each loan and interest support can be found on the Seocho-gu Office website.
District Mayor Jeon Seong-su said, “We have prepared various financial support measures to be a reliable pillar for small and medium business owners,” adding, “We hope these support programs tailored to each company’s situation will help alleviate financial difficulties and stabilize management.”
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