Suwon City in Gyeonggi Province is providing special guarantee support for small business owners with low credit ratings who face difficulties obtaining loans from conventional financial institutions.
The special guarantee program is a system that enables small business owners who lack collateral or are in poor financial condition and thus cannot obtain loans from banks to receive loans from financial institutions through a guarantee.
This year, Suwon City contributed 2.4 billion won to the special guarantee program, and the Gyeonggi Credit Guarantee Foundation will provide guarantees worth 24 billion won, which is ten times the contribution amount. The guarantee limit is 50 million won per business.
For small business owners who apply for the special guarantee, the city will also support the first-year guarantee fee. The support amount is 1% of the loan amount, up to a maximum of 500,000 won per business.
Small business owners residing in Suwon who have been registered as business owners for at least two months as of the application date are eligible to apply.
Applicants must first receive a phone consultation with the Gyeonggi Credit Guarantee Foundation (1577-5900) and then apply in person. The support program may end early if the budget is exhausted.
Detailed information can be found on the Suwon City website (www.suwon.go.kr).
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