City to accept applications for two days before selecting 300 businesses by random draw
The city of Suncheon in South Jeolla Province will accept applications for its fourth-quarter small-business financial support program Thursday and Friday.
The program offers small businesses that have operated in Suncheon for at least one year a loan subsidy of up to 30 million won ($22,100) per business, covering up to 5 percentage points of annual interest for two years.
With commercial bank lending rates running at 4 to 5 percent as of September, the city's subsidy effectively brings borrowing costs to zero, which has made the program highly popular.
Starting in the fourth quarter, the city is changing how it selects recipients. Rather than accepting applicants on a first-come, first-served basis, it will collect applications over the two-day window and then randomly draw 300 businesses.
"Under the old first-come, first-served system, many small-business owners who were busy running their shops missed out on the benefit," an official from the city's economic promotion division said. "From October, we plan to select recipients fairly by lottery from among those who apply within the deadline."
Applicants can visit the Suncheon Small Business One-Stop Support Center, located in front of the Hanyang Sujaein apartment complex in Yongdang-dong, submit documents by email at skskchoi@hanmail.net and confirm by phone, or visit in person during business hours from 9 a.m. to 6 p.m.
The draw will be held at 10 a.m. on Oct. 8. If the number of applicants falls short of the 300-business target, no lottery will be held. Results and next steps will be announced on the city's official website and sent by text message to selected businesses.
Required documents for the initial application include an application form, a personal information consent form, a copy of the business registration certificate and a copy of the representative's identification.
Businesses selected in the draw must then submit additional documents — including a business plan, a business registration certificate, sales and employee records, and certificates of full tax payment for both national and local taxes — before undergoing a credit guarantee review by the South Jeolla Credit Guarantee Foundation. Approved businesses can then receive low-interest loans from any of eight financial institutions in Suncheon.
For more information, applicants can check the announcement on the city's official website or contact the Suncheon Small Business One-Stop Support Center directly.
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