If you have insufficient funds to operate a coffee shop, use the Policy Loan of Small Business.
Eligibility
- Loans are provided to those who satisfy all ofthe following (2023 Guidelines for thepolicy loans for small enterprises agency lending,Small Business Market Promotion Corporation, December, 2022).
· Those that meet the criteria for small enterprises (average annual sales + number of full-time workers)
√ Average annual sales: Enterprises whose average sales by major business type, etc. meet the criteria for size of small enterprises according to the 「Enforcement Decree of the Framework Act on Small and Medium Enterprises」
√ Number of full-time workers: Business operators with less than 5 regular workers in their main business.
※ If a single enterprise is engaged in operating 2 or more different businesses, the number of workers is determined by regarding the business type with the largest average sales as its main business.
· An individual or a corporate owner with a business license (after the ‘commencement date of business’ on the business operator’s business registration as of the date of application)
· Small enterprises that engage in business types other than those that are excluded from the policy loan support (excluded business types: adult entertainment business, special business, etc.)
· Those that are not non-profit private business operators, corporations, organizations, or unions
Details of loan support
- Maximum loan: Up to KRW 70 million for the upper limit of integrated support for eachenterprise based on the loan balance of the Policy Loan of Small Business(agency lending)
- Loan interest rate: the interest rate varies depending on the loan
- Loan period: within 5 years(including 2 years of grace period)
- Repayment method: During the repayment periodafter the grace period, as a matter of principle,70% of the loan is to be paid in equal installments every 3 months and 30%is to be paid in a lump sum upon expiration of the repayment period (forseparately designated loans, the percentage of payment at maturity and themethod of installment payment may be different)
Procedure for loan support
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Application and submission of confirmation (online submission to SEMAS)
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Application for issuance of guarantee (online and in-person submission at the guaranteeing agency)
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Loan application and execution (in-person submission at the financial institution)
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Loan secured by guarantee organizations
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Eligibility review
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Issuance of guarantee after credit/business feasibility evaluation
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Loan approved through the guarantee
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Credit/ secured loan
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Eligibility review
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Submit after credit guarantee evaluation
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- Pure credit and secured loans can be borrowed directly from a loan handling bank without the need to go through a regional credit guarantee foundation.
※ Detailed information on preparing and submittingloan documents is available in the 2023 Guidelines for the policy loans for smallenterprises agency lending.