MSS Introduces Direct Loans and Simplified Screening for Small Business Owners in Homeplus Stores

Switch to Direct Loans Starting March 3

The Ministry of SMEs and Startups announced on the 25th that, starting March 3, it will convert emergency management stabilization funds for small business owners operating in Homeplus stores from an agency loan scheme to a direct loan scheme, and introduce simplified screening procedures.

Yonhap News Agency

This measure reflects suggestions raised during a meeting between Second Vice Minister Lee Byungkwon of the Ministry of SMEs and Startups and small business owners operating in Homeplus stores.

Under the existing agency loan scheme, applicants had to undergo guarantee and credit evaluations. Once this is changed to direct lending, loans will be processed based only on document screening by the Small Enterprise and Market Service (SEMAS), without going through guarantee institutions or bank reviews, enabling faster support.

The Ministry of SMEs and Startups has also taken steps to ensure that, even if a Homeplus store is seized due to delinquent local tax payments, small business owners operating in that store can still receive emergency management stabilization funds.

In principle, direct loans are provided to micro business owners with annual sales of less than 104 million won or to small business owners with less than seven years of business history. The ministry expects that including small business owners operating in Homeplus stores in the scope of direct loans, for the purpose of providing financial support, will increase their chances of obtaining loans compared to the agency loan scheme.

Small business owners operating in Homeplus stores who wish to receive direct loans can apply through the Small Business Policy Fund website from 10:00 a.m. on the 3rd. For more details, they can contact a SEMAS regional headquarters or center, or the Small Business Integrated Call Center.

Second Vice Minister Lee Byungkwon of the Ministry of SMEs and Startups said, "Going forward, the ministry will continue to listen carefully to on-site opinions and reflect them in our policies so that small business owners operating in Homeplus stores can overcome this crisis."