Yeongju City Implements Special Guarantee Program for Small Business Owners... 14.4 Billion KRW Scale

Support for Unsecured, Low-Interest Loans
for Small Business Owners and Young Entrepreneurs

Yeongju City in Gyeongbuk recently signed a business agreement with the Gyeongbuk Credit Guarantee Foundation (Chairman Kim Se-hwan) and 19 local financial institutions to support special guarantees and interest rate differential subsidies for small business owners, and will start the special guarantee support project for small business owners from the 20th.

The special guarantee system is designed to provide unsecured, low-interest loans through special guarantees to small business owners with financial difficulties and young entrepreneurs aged 19 to 39.

Through this project, Yeongju City will contribute 1.2 billion KRW to the Gyeongbuk Credit Guarantee Foundation, which will be used to implement a total of 14.4 billion KRW in special guarantee loans. The loan limit per business is 30 million KRW for small business owners and 50 million KRW for young entrepreneurs. Loan applicants can receive a guarantee certificate from the Gyeongbuk Credit Guarantee Foundation and then execute the loan at the contracted financial institutions.

Small business owners and young entrepreneurs who execute loans through the special guarantee will also receive interest rate differential support. To this end, Yeongju City has separately allocated a budget of 330 million KRW to support an interest rate differential of 3% per annum for two years after the loan execution.

The loan repayment method can be chosen between equal principal repayments over three years after a two-year grace period or a lump-sum repayment at maturity after two years, and the project period lasts until the loan limit is exhausted.

Mayor Park Nam-seo said, “We expect practical financial support to be provided to small business owners and young entrepreneurs who have difficulty obtaining loans from financial institutions due to lack of collateral,” and added, “We hope this special guarantee project will contribute to stabilizing small business management and revitalizing the local economy.”