DAEGU — The Daegu Metropolitan Government said on the 21st that it has begun accepting applications for 500 billion won ($360 million) in financial support programs, including guarantee fee subsidies and interest support on management stabilization loans for small and medium-sized enterprises, funded through a recent supplementary budget.
The 250 billion won guarantee fee support program covers part of the fee companies pay when using letters of guarantee from the Daegu Credit Guarantee Foundation. Depending on a company's credit rating, high-credit borrowers receive a 0.5 percentage point reduction and mid- to low-credit borrowers a 0.8 percentage point reduction for the first year. No separate application is required, as the benefit is linked to the foundation's issuance of guarantee letters and applied automatically when a guaranteed loan is disbursed.
For the interest support program on SME management stabilization loans, the city is expanding the lending pool by 250 billion won to 1.25 trillion won from 1 trillion won. Companies can receive support covering 1.3 to 2.2 percentage points of their loan interest for one year, depending on the loan amount and whether they qualify for preferential terms. A company borrowing 100 million won could receive support of up to 1.7 percentage points, saving about 1.7 million won in financing costs.
"We will work closely with the Daegu Credit Guarantee Foundation on applications and processing so that guarantee fee support and the additional management stabilization funds reach companies that need the money quickly," said Park Ki-hwan, director general of the city's economic affairs bureau.
