Launch of 3.3 Trillion Won "Growth Promotion Guaranteed Loan for Small Business Owners"

First Delegated Guarantee Between Banks and Regional Credit Guarantee Foundations
Sequential Launch by Each Bank Starting November 17

The Ministry of SMEs and Startups announced that the "Growth Promotion Guaranteed Loan for Small Business Owners," which provides funds to help small business owners strengthen their competitiveness and support their growth, will be launched sequentially by each bank starting on November 17.

The Growth Promotion Guaranteed Loan for Small Business Owners is a product that offers up to 100 million won in guaranteed loans with a maximum repayment period of 10 years to small business owners who can demonstrate plans to strengthen their competitiveness, such as increasing sales. Banks will contribute a total of 300 billion won to the Korea Federation of Credit Guarantee Foundations over three years, and based on this, a total of 3.3 trillion won in guaranteed loans will be provided.

This program is operated through a delegated guarantee method between banks and regional credit guarantee foundations. Funds are provided to small business owners on the condition that they possess competitiveness, thereby supporting their growth. Since banks review and issue the guarantee certificates themselves under this delegated guarantee system, small business owners do not need to visit regional credit guarantee foundations to obtain a guarantee certificate and can conveniently receive the guaranteed loan directly at the bank in a one-stop process. Furthermore, banks follow the screening guidelines of regional credit guarantee foundations while also utilizing their own internal review systems. As a result, both the expertise of the regional foundations and the credit assessment capabilities of the banks are combined, enabling more precise evaluation of repayment ability and more effective credit supply.

The Growth Promotion Guaranteed Loan targets small business owners who are currently operating a business, have a credit score of 710 or higher, have been in business for at least one year, and can demonstrate certain requirements for strengthening competitiveness such as improved profitability or increased sales. Eligible applicants include small business owners who can prove their plans for strengthening competitiveness, such as submitting documentation on the adoption of smart technologies like kiosks or an increase in the number of employees. Through this funding, financial institutions will play an active role by discussing with small business owners in advance the productive use of funds to support their further growth. In addition, small business owners who have received certain consulting services related to their business from regional credit guarantee foundations, the Small Enterprise and Market Service, or local governments as part of their efforts to enhance competitiveness are also eligible to apply.

The Growth Promotion Guaranteed Loan will first be launched on November 17 by eight banks: NongHyup, Shinhan, Woori, KB Kookmin, IBK, Standard Chartered, Suhyup, and Jeju Bank. On November 28, six additional banks-Hana, IM, Busan, Gwangju, Jeonbuk, and Gyeongnam-will launch the product. Three internet banks-Kakao Bank, Toss Bank, and K Bank-which must implement the entire process non-face-to-face, will launch the product in early 2026.

The Ministry of SMEs and Startups and the Financial Services Commission, in cooperation with relevant organizations such as IBK, Korea Credit Guarantee Fund, Small Enterprise and Market Service, and regional credit guarantee foundations, will continue to monitor the implementation status of existing special funding programs for small business owners and ensure that the necessary financial resources for startup, growth, and business management are supplied without interruption.