Operational Limit Increased from 7.73 Billion Won to 19.33 Billion Won
Pyeongtaek City in Gyeonggi Province announced on September 19 that it will expand the limit operation method of the "Special Guarantee Support Project for Small and Medium-Sized Enterprises" from the previous four times to ten times, in order to alleviate funding difficulties and stabilize the management of local small and medium-sized enterprises.
This project provides guarantees for loans to small and medium-sized enterprises that lack sufficient collateral or have difficulty obtaining credit guarantee certificates, using funds contributed by the city to the Gyeonggi Credit Guarantee Foundation. Until now, the city has recommended special guarantees to the foundation up to four times the total fund of 8.4 billion won it contributed.
However, by expanding the recommendation limit to ten times, the operational limit has increased by 11.6 billion won, from 7.73 billion won (as of September) to 19.33 billion won, enabling more small and medium-sized enterprises to benefit from the guarantee.
The city explained that it decided to expand the recommendation limit in order to address several issues: the annual operational limit has been decreasing as the amount of subrogation payments due to bankruptcies of borrowing companies exceeds the accumulated contributions, and it is difficult to predict the recommendation limit because it takes an average of more than eight years for borrowing companies to repay their loans.
Pyeongtaek Mayor Jung Jangsun stated, "We will continue to support the growth of businesses by strengthening customized support."
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