Special Guarantee Program Launched for Small Business Owners in Sejong
Long-term, Low-interest Loan Conversion to Ease Repayment Burden
Starting from July 30, the 'Special Guarantee for Installment Repayment for Small Business Owners Affected by COVID-19' has been implemented in Sejong to ease the repayment burden for small business owners in the region who suffered losses due to COVID-19.
This special guarantee program supports small business owners who previously received guarantees from the Sejong Credit Guarantee Foundation by allowing them to convert short-term loans, which are difficult to repay in the short term, into long-term, low-interest loans for up to seven years. Eligible recipients are small business owners who have operated their business between April 2020 and June 2025 and meet at least one of the following conditions: ▲ Businesses whose sales at the end of 2024 decreased compared to the end of any year from 2020 to 2023 ▲ Businesses holding two or more debts incurred between 2020 and 2023 ▲ Businesses operated by representatives with mid- or low-credit scores (839 points or lower based on NICE credit rating) ▲ Businesses whose credit score has dropped by 100 points or more within the past year.
The guarantee limit is up to 100 million won within the range of the existing guaranteed balance. The interest rate is set at the CD rate (91-day) plus up to 1.8 percentage points, and with government support, an additional annual interest rate reduction of 1.0 percentage point is available.
The government also covers 50% of the guarantee fee, so the actual guarantee fee rate that small business owners must pay is only 0.4% per year.
Kim Hyomyung, Chairman of the Foundation, stated, "I hope this special guarantee will provide practical and direct help to small business owners who are struggling due to the COVID-19 pandemic," and added, "Small business owners who are eligible for support should contact the Foundation and actively apply."
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