2023 Small Business Policy Fund

Assistance Guide

(Small Enterprise Market Service Association)

What is Small Business Policy Fund?

This Policy Fund is to create a stable business environment to enhance the self-sufficiency

and to establish livelihood safety net of small businesses

It is divided into direct loan and loan by agent, depending on the financing method.

Direct loan

Direct application, evaluation, until it proceed at the Small Enterprise Market Service Association

Loan by Agent

After confirming eligibility for assistance from the Small Enterprise Market Service Association,

Proceed to guarantee, credit or secured Loan at Financial Institution

◈ Eligibility for assistance

∎ Individual businesses or corporations that meet the small business criteria (average annual sales + number of full-time workers)

∎ Excluded: Businesses excluded from policy fund assistance

- Industry in which support is inappropriate due to public sentiment, such as gambling industry etc.

(Gambling, extravagance, pleasure, health hazards, real estate speculation, etc.)

- High-income and relatively easy to finance industry

(Professional services such as legal and tax affairs, finance and insurance, etc.)

* Please refer to the notice on the homepage for details of industries excluded from assistance

------------------------------------Notice -----------------------------------

∎ Loans may not be able depending on the eligibility of loan restriction* by confirmation, screening, and evaluation.

* Tax delinquency, credit information registration, overdue, infringement of rights, business shutdown, etc.

∎ There will be subject to disadvantages such as excluding loan support or canceling the support decision.

In case of solicitation of a loan due to improper intervention by a third party

∎ For further details, please refer to the announcement for each fund.

* Small Business Policy Fund website(https://ols.sbiz.or.kr) – Refer to notices

--------------------------------- Direct Loan Information -------------------------

01. Assistance details

∎ Within the total loan limit of KRW 500 million (based on the balance of assistance) for the same company

- Among the smart funds, social economy enterprises are less than KRW 1 billion in total.

- Emergency management stabilization funds is excluded from application of the integrated assistance limit

Type of Funds	Loan Terms
Specialized Fund for Small Businesses	∎Eligibility: Small businessmen operating in the manufacturing industry ∎Loan limit: (driver) 100 million won, (small exporters less than 200 million won), (facilities) 500 million won ∎Loan interest rate: Policy fund base rate + 0.6%p ∎Loan period: (operation) 5 · years (facility) 8 years
Growth Promotion Fund	∎Eligibility: Small merchants with more than 3 years of business experience, introduction of automation equipment (planned) ∎Loan limit: up to KRW 200 million per company ∎Loan interest rate: Policy fund base rate +0.4%p ∎Loan period: 5 years
Smart Fund	∎Eligibility: Selected as an innovative type of industrial complex (100 years small craftsman, 100 years store, etc.) small businesses, introduction of smart facilities, social enterprises, etc. ∎Loan limit: (operation) KRW 100 million (social enterprise KRW 200 million), (Facilities) KRW 500 million (KRW 1 billion for social enterprises) ∎Loan interest rate: Base rate for policy funds +0.2%p ∎Loan period: (operation) 5 years · (facility) 8 years
Re-challenge Special Fund	∎Eligibility: Re-entrepreneurship (Completion of Hope Return Package re-entrepreneurship training within 1 year etc.) and debt restructuring, faithful repayment small business ∎ Loan limit: KRW 70 million per company ∎ Loan interest rate: 3.0% per year (fixed rate) ∎ Loan period: 5 years
Small Business Traditional Market Fund	∎Eligibility: Small businesses with low credit (NCB score of 744 or less) ∎Loan Limit: Applying different limits depending on borrower’s credit rating (up to KRW 30 million) ∎Loan interest rate: 2.0% per year (fixed rate) ∎Loan period: 5 years
Emergency Management Stabilization Fund	∎Eligibility: Among small business owners who have received a “Disaster Small or medium sized Business(Small Business) Confirmation Certificate” from the local government due to a disaster or calamities, The small business owners who are unable to use private financial institutions(proxy loans) due to postponement of delinquent payments, etc. ∎ Loan Limit: Up to KRW 70 million per company ∎ Loan interest rate: 2.0% per year (fixed rate) ∎ Loan period: 5 years
New Business Start-up Academy Linked Fund	∎ Eligibility: Small business start-up within 1 year of completion date among graduates of New Business Startup Academy ∎ Loan limit: up to KRW 100 million per company ∎Loan interest rate: policy fund base rate + 0.6%p ∎ Loan period: 5 years

* Policy Fund Base Rate: Quarterly variable rate

--------------------- Information on Loan by Agent ---------------------

02. Support Contents

∎ Within 70 million won of integrated support per company (based on the balance of support)

- However, if the loan limit for each fund exceeds the integrated support limit, the higher limit will be followed

(growth promotion fund, disabled business support fund)

- The emergency management stabilization fund is excluded from the application of the integrated support limit

Type of funds	Loan conditions
Standard fund	∎Eligibility: Small business owner with less than 3 years of business experience ∎Loan limit: up to 70 million won per company ∎Loan Interest Rate: Policy Fund Base Rate + 0.6%p ∎Loan period: 5 years
Growth-promoting funds	∎Eligibility: Small business owner with more than three years of business experience ∎Loan limit: Up to 100 million won per company ∎Loan Interest Rate: Policy funds base rate + 0.4%p ∎Loan period: 5 years
Disabled Enterprise Support Fund	∎Eligibility: A small business owner who holds a welfare card for persons with disabilities or a certificate of confirmation of enterprise for persons with disabilities ∎Loan limit: Up to 100 million won per company ∎Loan Interest Rate: 2.0% per annum (fixed rate) ∎Loan period: 7 years
Crisis area support fund	∎Eligibility: Small businesses located in areas where there are concerns about regional economic crises, such as employment crisis areas, industrial crisis response special areas, and areas where shipbuilders are located ∎Loan limit: Up to 70 million won per company ∎Loan Interest Rate: 2.0% per annum (fixed rate) ∎Loan period: 5 years *Refer to the notice on the website for the relevant area
Emergency Management Stabilization Fund	∎Eligibility: Small business owners who have been issued a “Disaster small and medium interprises(small business owners) confirmation certificate” by the local government due to disaster and calamities ∎Loan limit: Up to 70 million won per company ∎Loan Interest Rate: 2.0% per annum (fixed rate) ∎Loan period: 5 years
Youth Employment Linked Fund	∎Eligibility: Youth representative with less than 3 years of business experience, youth employment (more than 50% of the total or youth employment within the last 1 year) Small business owners ∎Loan limit: Up to 70 million won per company ∎Loan Interest Rate: 2.0% per annum (fixed rate) ∎Loan period: 5 years

* Policy Fund Base Rate: Quarterly Floating Rate

03. Direct Loan Application and Procedure Guide

Application/Registration		Examination and evaluation		Loan execution
Working capital Online application Facility fund On-site application	→	Evaluation of credit, business performance, sales, limit, etc	→	Implementation after contract

∎ Online application: Small Business Policy Fund Website(https://ols.sbiz.or.kr)

∎ On-site application: Apply by visiting the regional center where the place of business is located

04. Agent/proxy loan application and procedure guide

Collateral classification		Application/ registration		Issuance of a guarantee certificate		Loan implementation
Guarantee certificate		Issuance of "Confirmation Letter for Policy Funding"	→	Evaluation of credit, business feasibility, etc.	→	Loan with a guarantee as collateral
				Guarantee agency		Bank
Credit/ Real estate				→		Loan after evaluation of credit/ real estate collateral
		Online or On-site
						Bank

∎ Online application

Small Business Policy Fund Website(https://ols.sbiz.or.kr)

∎ Application thru Bank Visit

Nonghyup Bank, Woori Bank, Shinhan Bank, Forestry Cooperative Federation, Hana Bank visit each branch in Chungcheong and apply

∎ Financial institutions executing loans (18 banks)

Gyeongnam, Gwangju, KB, IBK, NH, Daegu, Busan, KDB, MG, Sh, Credit Union Central Association,

Shinhan,  Woori,  Jeonbuk,  Jeju,  Korea Standard Chartered,  Hana,  Korea Federation of Forestry Cooperatives

∎ Confirmation of policy fund support

The ‘confirmation of policy fund support target’ indicates that small business owners are eligible for policy fund support. Confirmation documents do not guarantee money loan

We support small business policy funds.

ols.sbiz.or.kr

◈ Inquiries

∎ Small and Medium Business Integrated Call Center ☎1357

∎ Regional Center under the jurisdiction of the Small Business Market Promotion Corporation