Monday, November 29

1% interest rate loan for small business, who and how to get it?

Provided by the Ministry of Strategy and Finance and the Ministry of SMEs and Startups

The government will provide loans of up to 20 million won at an interest rate of 1.0% per annum to small business owners whose sales have plummeted due to quarantine measures to restrict personnel and facility operation due to COVID-19. Although 800,000 small business owners who were banned from gathering or restricted from business were compensated for their losses in cash worth 2.4 trillion won, there was no separate plan for industries that suffered “indirect damage” due to restrictions on personnel and private gatherings. .

On the 23rd, the Ministry of SMEs and Startups held a small business policy deliberative meeting at the government complex in Seoul and decided on ‘a plan to support the recovery of small businesses affected by COVID-19’. According to the Ministry of SMEs and Startups, a total of 2 trillion won in special loans up to 20 million won at an interest rate of 1.0% per annum will be supplied to 100,000 businesses that are not eligible for loss compensation that have implemented the ‘restriction on personnel and facility operation’ quarantine measures. The interest rate of 1.0% per annum is the lowest interest rate among loan products available in the market.

The target of the special loan support is small business owners whose sales have decreased due to the quarantine measures that restrict the operation of personnel and facilities that were implemented from July 7 to September 30 this year. This applies only to small businesses that opened before September 30th. Even in the same industry, depending on the stage of applying the distance for each local government, the eligibility for loans differs, so you should check through the information window on the Small Business Promotion Corporation’s policy fund website.

For example, in the case of a singing practice center, facilities in the metropolitan area where the 4th stage of distancing is applied are subject to compensation for losses due to the operation restriction after 10pm, but Ulleung-gun, Gyeongbuk, where the 1st stage was implemented, has a ‘one person per 6m2’ limit on the number of people, so special loans become the target

As for the sales reduction criteria, various criteria such as a decrease in at least one quarterly or monthly sales from the same period of 2019 or 2020 in sales from July to September of this year will be applied to enable as many small businesses as possible to receive loans.

Startups from June to September of this year without taxable holding data are included in the support target regardless of whether sales decrease or not. Applications can be submitted through the Small Vacuum Policy Fund website from 9 am on the 29th. In order to distribute simultaneous access, the first week will be conducted as a five-subject system, and from the 4th of the following month, it will be conducted regardless of the day of the week.

The government also provides utility bills such as electricity bills and industrial accident insurance premiums of up to 200,000 won to small business owners. For two months, 200 billion won will be provided to reduce electricity bills by 50% and industrial accident insurance premiums by 30%, up to a maximum of 200,000 won per company. Small business owners subject to loss compensation who have been banned from gathering and business hours are limited, as well as small business owners who have been restricted from using personnel or facilities, but are excluded from compensation for losses. However, in the case of industries excluded from loss compensation due to personnel restrictions, etc., support is available only when sales have decreased.

The Ministry of SMEs and Startups will also hold consumption promotion events to support small businesses. From the 18th to the 26th of next month, the ‘Christmas Market’, a large-scale discount event in which shopping malls and traditional markets all over the country participate at the same time, will be held in major commercial districts, and the fourth Sunday of every month will be designated as ‘Market Day’ and will be operated from next month to June next year. do.

In addition, it will nurture 100,000 small business owners every year to advance online, and provide various support such as coupons to activate the small business subscription economy (regular payment). Next year, it plans to issue 1.5 trillion won worth of mobile and card Onnuri gift certificates.

Reference-www.khan.co.kr

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