Gyeonggi Province Expands Low-Interest Loan Support for Food Service Businesses

[Suwon Ilbo=Reporter Park No-hoon] Gyeonggi Province is providing low-interest operating capital loans of up to 20 million won per establishment to food service businesses struggling due to COVID-19.

Gyeonggi Province announced on the 3rd that it will invest a total of 10 billion won in the 'Food Sanitation Business Low-Interest Loan Project' this year.

The 'Food Sanitation Business Low-Interest Loan Project' is funded by the province's Food Promotion Fund and supports loans for ▲modernization and replacement of production facilities at food manufacturing and processing establishments ▲improvement of aging facilities at food service businesses ▲operating capital for food service establishments.

Until last year, the province provided operating capital support only to model restaurants and hygiene-certified businesses. This year, to reduce the operating cost burden on food sanitation businesses struggling due to COVID-19 and other factors, the province expanded the support target to all food service establishments (excluding entertainment and hostess bars).

Food service establishments in Gyeonggi Province can receive operating capital loans of up to 20 million won at 1% interest with terms of 1 year grace period followed by 2 years of equal installment repayment.

Model restaurants and hygiene-certified businesses can receive loans of up to 30 million won.

The maximum loan amount will be determined after reviewing individual credit ratings and collateral status. Those with insufficient credit or collateral can apply for loans with credit guarantees from the Gyeonggi Credit Guarantee Foundation.

For inquiries regarding loan applications, contact your city or county food sanitation department or visit any branch of NH Agricultural Bank (excluding regional agricultural cooperatives) by phone or in-person consultation.

Additionally, manufacturing and processing establishments that conduct facility improvements can receive loans of up to 500 million won, and food service establishments can receive up to 100 million won at 1% interest with terms of 2 years grace period followed by 3 years of equal installment repayment.

Once the currently planned 10 billion won in Food Promotion Fund is exhausted, the province plans to secure additional budgets through supplementary budgets to provide loans to as many establishments as possible.

Ryu Young-chul, Director of the Gyeonggi Province Health and Wellness Bureau, said, "We hope that food sanitation business owners depressed by COVID-19 will be able to alleviate the economic burden of operating their businesses and provide high-quality and safe food to our residents."