The Korea Credit Guarantee Fund announced that it would implement a ‘Corona 19 Economic Recovery Special Guarantee’ for small business owners who have suffered business damage due to the prolonged Corona 19.
This special guarantee is one of the government’s ‘customized financial support for the self-employed and small business owners’ program. In preparation for the post-coronavirus, it will provide 3.25 trillion won for two years to small businesses affected by COVID-19 who are preparing for a new leap forward such as facility investment and manpower expansion.
The target of support is small business owners who have suffered direct or indirect damage due to contraction in domestic consumption and business restrictions during the COVID-19 period.
We plan to provide broad support so that no companies are excluded from financial support, including companies that have received quarantine subsidies or loss compensation, as well as companies that have suffered losses in sales or operating profits due to prolonged COVID-19.
Working capital is supported up to KRW 300 million and facility funds are supported within the required funds. Through measures such as preferential application of guarantee ratio (up to 90%) and guarantee fee rate (0.5% deduction), and relaxation of screening standards and voting rights, we plan to support the prompt supply of guarantees to damaged companies.
In addition, 0.1% of the guarantee fee is additionally deducted for small business owners who have received specialized consulting from the Korea Credit Guarantee Fund or the Small Business Promotion Corporation to ease the burden of financial costs on applicants.
A Shinbo official said, “We have prepared a liquidity support program to help small business owners who are suffering from the prolonged Corona 19 business recovery.”
