Yeongdeungpo-gu, led by District Mayor Jo Yu-jin, announced it will provide low-interest loans from its small and medium-sized enterprise development fund to help local small business owners and SMEs struggling under prolonged high prices and high interest rates.
The district allocated 3.9 billion won of its total 7 billion won ($4.64 million) SME development fund budget in the first half of this year. It will now inject the remaining 3.1 billion won in the second half — 2 billion won in general business loans and 1.1 billion won earmarked for small business support. Loans carry an annual interest rate of 1.5%, with a maximum of 200 million won per company, repayable in equal installments over four years following a one-year grace period.
The initiative comes amid a deepening cash crunch for self-employed business owners, whose outstanding loans and delinquencies at financial institutions have hit record highs. The district said it expects the low-interest financing to provide meaningful relief for small businesses and SMEs facing financial strain.
Businesses wishing to apply should first confirm their eligibility at a designated financial institution based on the type of collateral they can offer. General business loans backed by real estate are handled at the Woori Bank Yeongdeungpo District Office branch, while small business support loans backed by credit guarantee certificates can be arranged through the Seoul Credit Guarantee Foundation's Yeongdeungpo Comprehensive Support Center.
To help small business owners who find it difficult to visit the guarantee foundation during weekday business hours, the district will send consultants to neighborhood community centers across the district from Monday through Thursday next week. Businesses interested in applying can receive advance credit guarantee consultations from specialists at their nearest community center.
Alongside this, the district is expanding its special guarantee program to ease the financial burden on small businesses and SMEs with limited collateral. In March, the district signed MOUs with the Seoul Credit Guarantee Foundation and five financial institutions, raising the total special guarantee pool by 8.8 billion won from last year to 35 billion won.
Details on the neighborhood consultation schedule and how to apply for SME development fund loans are available on the Yeongdeungpo-gu district office website under the "Notices and Announcements" board, or by contacting the district's Employment and Economy Division.
"I hope this low-interest loan support provides real help in stabilizing the operations of small business owners and SMEs facing financial difficulties," District Mayor Jo said. "We will continue to develop effective support measures that can breathe new vitality into the local economy."
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