1 trillion rent loans to prohibited collective business… Highest interest rate cut for small business owners’ secondary loans
The government has decided to operate a low-interest loan program worth KRW 1 trillion to relieve the burden of rent for small business owners who are suffering from the spread of the novel coronavirus infection (Corona 19).
There was also a plan to provide emergency liquidity to small business owners and SMEs through special loans and guarantee support.
On the 29th, the government announced customized damage support measures in response to the third spread of Corona 19.
First, a small business owner’s rent loan program is launched.
The government has decided to supply low-interest (1.9%) rental loans at a scale of 1 trillion won to the collective prohibited industries.
With a limit of 10 million won, 100,000 companies can benefit.
Small business owners in the collective restricted business can borrow loan funds (total of 3 trillion won) at an interest rate of 2 to 4%.
If you are a small business owner in a limited collective business, you can get an additional loan of up to 10 million won regardless of whether you use the existing small business financial support program.
They also benefit from a guarantee fee reduction of 0.9% now.
The first year guarantee fee is exempted, and in the second to fifth years, 0.6% is applied, down 0.3% points.
Finance Commissioner Eun Seong-soo explained at the briefing that the timing of the application of the lease loan program for small business owners was “considered with the financial sector and received an answer that it is possible from the receipt on January 18”.
In the current metropolitan area, in step 2.5, grouping prohibited businesses are entertainment facilities such as entertainment bars and hunting pots, karaoke rooms, and gyms.
It has also prepared measures to support special loans and guarantees worth 200 billion won for small business owners.
The government will lower the guarantee fee (0.9%) of the secondary loan program for small businesses currently operated by commercial banks by 0.6 percentage points in the first year.
The interest rate for secondary loans is also lower.
Banknotes decided to cut their highest interest rate of 4.99% per year by 1 percentage point.
Currently, the interest rate for secondary loans for banknotes is around 2.44-4.99% per year.
Collective restrictions/prohibitions SMEs are provided with emergency management stabilization funds (200 billion won) at a low interest rate (1.9%).
For the special guarantee for small and medium-sized businesses affected by Corona 19, KRW 2.4 trillion (credit guarantee fund 1.5 trillion won, technology guarantee fund 900 billion won) will be invested.
A support plan for affected industries was also released following the strengthening measures for quarantine during the year-end and New Year holidays.
In addition to new loans (30 billion won), extension of the repayment of existing loans, jobs for safety and instructors (6 billion won), and quarantine support (2.5 billion won) will be provided to mid- and large-scale winter sports facilities.
Support measures such as loans (200 billion won), extension of loan repayment, customized worker education and quarantine support (14.3 billion won) were prepared for mid- to large-scale accommodation facilities.
/yunhap news