Jungnang-gu announced Thursday that it extended a total of 107.7 billion won ($73.5 million) in loans to more than 2,700 small and medium-sized enterprises and small business owners in the district from the second half of 2018 through the first half of 2026.
In June, the district held a "Small Business Startup Academy" to help residents preparing to launch businesses and existing small business owners build practical skills.
The district built its financial support framework around two programs — loans from its own SME development fund and special credit guarantee loans offered in partnership with commercial banks and the Seoul Credit Guarantee Foundation — to help small businesses and self-employed operators struggling to secure funding amid high interest rates.
The SME development fund loans carry a low annual interest rate of around 1.5 percent to ease the financial burden on businesses. The special credit guarantee loans provide up to 200 million won per business to help small operators overcome cash-flow difficulties and stabilize their operations.
The district is continuing its financial support this year. In the first half, it secured an additional 26.2 billion won in financing capacity by signing agreements with major financial institutions, including the four largest commercial banks — Woori Bank, KB Kookmin Bank, Hana Bank and Shinhan Bank — as well as saemaul credit cooperatives.
Applications are accepted year-round through the Seoul Credit Guarantee Foundation's Jungnang General Support Center. Once an applicant clears a credit review and guarantee assessment, a guarantee certificate is issued and the loan is disbursed through a partnering saemaul credit cooperative in the district.
"We will continue to lower the barriers to financial support and expand the scale of assistance so that small business owners can sustain their livelihoods with stability," District Mayor Ryu Gyeong-gi said.
ikson@heraldcorp.com
