Special Credit Guarantee of 25 Billion KRW,
SME Development Fund of 4 Billion KRW
Mapo-gu (Mayor Park Gang-su) is promoting a low-interest loan support project totaling 29 billion KRW to assist small and medium-sized enterprises (SMEs) and small business owners in the area who are struggling due to the economic downturn.
This year, Mapo-gu has prepared loan funds consisting of 25 billion KRW in special credit guarantees and 4 billion KRW from the SME Development Fund.
The special credit guarantee project supports small businesses and small business owners facing management difficulties by enabling them to receive loans at low interest rates, significantly lowering the application requirements for those lacking collateral.
The special credit guarantee support targets businesses located in Mapo-gu. However, industries restricted from loan support, such as entertainment bars and gambling facilities, are excluded.
Businesses can use up to 50 million KRW in operating funds without collateral for up to five years. The interest rate ranges from 2.75% to 3.25% per annum (3-month CD variable rate).
The first phase of support targets small businesses and small business owners affiliated with related local organizations (professional groups), with applications accepted until April 30.
Businesses wishing to apply for the special credit guarantee should apply through their affiliated organization and later visit the Mapo branch of the Seoul Credit Guarantee Foundation to submit the required documents as instructed.
Small businesses and small business owners not affiliated with any organization can apply from April 1 until the budget is exhausted.
Additionally, the SME Development Fund is established to ensure stable management and growth of SMEs in the region.
The support targets SMEs and small businesses registered with a factory in Mapo-gu, engaged in manufacturing or manufacturing-related knowledge service industries.
The loan interest rate is 1.0% per annum, with support ranging from 30 million KRW to a maximum of 200 million KRW per business. However, collateral such as real estate or a credit guarantee certificate is required for the loan. Applications for the SME Development Fund are accepted until the budget is exhausted.
Detailed information about the Mapo-gu loan projects can be found in the announcement posted on the Mapo-gu official website under notices.
Park Gang-su, Mayor of Mapo-gu, stated, “We hope this loan support project will be a source of hope for SMEs and small business owners struggling with financing,” and added, “Mapo-gu will continue to provide unwavering support so that SMEs and small business owners, the core of the local economy, can grow stably.”
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
