October 15 Geumcheon-gu Small Business Special Interest-Free Loan Support Project Agreement Ceremony Held
21.2 Billion KRW Loan Support to Help Small Businesses Overcome Crisis Amid Economic Downturn
Geumcheon-gu (Mayor Yu Seong-hoon) announced that it will promote a special interest-free loan support project that provides loan interest support for small business owners for one year.
On October 15 at 10 a.m., the district signed a “Cooperation Agreement for Geumcheon-type Special Interest-Free Loan Support for Small Business Owners” with the Seoul Credit Guarantee Foundation, Woori Bank, and Hana Bank at the Geumcheon-gu Office small conference room.
This agreement was made to resolve the financial difficulties of local small enterprises and small business owners with insufficient collateral by promoting a special credit guarantee and interest-free loan support project worth 21.2 billion KRW.
To implement the project, Geumcheon-gu Office will be responsible for providing one year of interest-free support on loans. The Seoul Credit Guarantee Foundation will handle consultations and guarantee reviews for the special credit guarantee for small business owners, while Woori Bank and Hana Bank plan to execute the loans.
The loan limit ranges from a minimum of 10 million KRW to a maximum of 50 million KRW, with a one-year grace period followed by four years of equal installment repayments, and a variable interest rate applied. The interest incurred by small business owners during the first year after the loan is issued will be paid directly to the banks by the district office.
The support targets are small enterprises and small business owners who have operated their business for more than six months or have a personal credit rating of grade 7 or higher as the business representative. Eligible small business owners can consult or apply for loans at the Seoul Credit Guarantee Foundation Geumcheon branch starting from October 16, after the agreement.
Yu Seong-hoon, Mayor of Geumcheon-gu, said, “Through this agreement, we hope that the Geumcheon-type special interest-free loan support will help small enterprises and small business owners in Geumcheon-gu overcome the management crisis caused by high inflation and high interest rates. We also hope that continuous support for small business owners will help develop local neighborhood markets and become a pillar of revitalizing the local economy.”
Meanwhile, since August 2022, the district has been operating the “Neighborhood Economy Support Center” to collect and provide information on small business support projects dispersed across institutions. It also continues to support small business owners through phone and in-person consultations as well as on-site visits directly to small business stores.
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