Sejong City to Provide 51 Billion Won in Customized Financial Support for Small Business Owners

Intensive Support for Small Business Owners and Those with Medium to Low Credit

To support small business owners facing management difficulties due to high interest rates and the economic downturn, a total of 51 billion won in customized financial assistance will be provided in the second half of this year. In addition to existing funds for small businesses (startup and management improvement funds), five financial support programs have been prepared, including four new initiatives: ultra-low interest funds, conversion guarantees from the Chungnam Credit Guarantee Foundation, long-term installment repayment funds, and Biz+ Card guarantees.

According to Sejong City on June 29, the small business funds (startup and management improvement funds) provide up to 70 million won per person for local small business owners, with interest subsidies of 1.75 to 2.0% to alleviate financial burdens. The ultra-low interest fund offers loans of up to 20 million won with a 4% annual interest subsidy for two years to small business owners with annual sales of less than 104 million won who meet certain criteria, such as occupying vacant commercial spaces, being tenants, or having started their business within the past three years.

New support will also be provided to encourage local small business owners currently using the Chungnam Credit Guarantee Foundation's guarantees to switch to the Sejong Credit Guarantee Foundation. Eligible applicants will receive a 2% annual interest subsidy upon conversion, and the guarantee fee for the Chungnam-to-Sejong conversion guarantee will be reduced to 0.5% to further ease financial burdens.

Additionally, a new long-term installment repayment fund will be introduced for small business owners with medium to low credit who are currently using loans with interest rates of 8% or higher. This fund allows repayment in installments over up to seven years, aiming to reduce delinquency risks and support stable management by setting monthly payments at manageable levels.

The Biz+ Card guarantee for small business owners provides a guarantee for card payment settlements to those who have operated for more than one year and recorded sales of at least 12 million won. Emergency funding of up to 10 million won will be supported, along with exemptions from guarantee fees and annual membership fees, and a 3% cashback benefit.

Starting next month, the city plans to accept applications for financial support in cooperation with the Sejong Credit Guarantee Foundation. Eligibility requirements and application procedures vary for each program, and detailed information can be found on the city's official website.

A city official stated, "We will continue to pursue various support measures so that small business owners facing management difficulties can overcome the crisis through diverse financial assistance."