The Restart Fund Program for Supporting Small Business Recovery to Be Overhauled
Expanded Eligibility for Principal Reduction and Policy Loans,
Due to the prolonged COVID-19 pandemic and economic downturn, more self-employed individuals are closing their businesses, leading to an increase in the sale of used goods related to business closures in the secondhand market. Getty Images Bank,
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, ‘Mr. A, who ran a Muay Thai training center, had to shut down due to business difficulties caused by COVID-19 restrictions. He had considerable loans from operating the academy. Mr. A decided to take an education course under the Ministry of SMEs and Startups’ closure support project, the ‘Hope Return Package,’ and pursue reopening his business. “After attending the package education, I received an additional loan principal reduction of 10 percentage points during the debt adjustment process, which gave me the courage to restart,” he said.’,
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, ‘The Financial Services Commission (FSC) has decided to expand and revise the Restart Fund program to support small business owners facing difficulties in making a comeback. On the 22nd, Chairman Kim Byeong-hwan visited Anyang Central Market in Anyang-si, Gyeonggi-do, to meet with users of the Restart Fund and the head of the merchant association, where he announced the revision plans. The Restart Fund is a program initiated in October 2022 to alleviate repayment burdens for self-employed and small business owners through debt adjustment, helping those affected by COVID-19.’,
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, ‘The FSC plans to expand new financial support for self-employed and small business owners who have utilized the Restart Fund program and have faithfully repaid their debts. Previously, only users who had honestly fulfilled a six-month debt adjustment through the Credit Recovery Committee could use financial products from the Korea Inclusive Finance Agency. Moving forward,’, those who have consistently repaid under the Restart Fund will also have access to policy loans.,
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, ‘The criteria for principal reduction preferential treatment for long-term defaulters and those who have closed their businesses with over 90 days of overdue debt will also be expanded to include additional training courses.’, Currently, if one utilizes the Ministry of Employment and Labor’s National Employment Support System or completes the Ministry of SMEs and Startups’ Hope Return Package, they can have their principal reduced by up to 10 percentage points. Polytechnic’s vocational training and regional Credit Guarantee Fund’s recovery education will be added to this.,
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, ‘Chairman Kim stated, “To ensure no one is excluded from debt adjustment benefits due to lack of awareness, we will run an intensive promotional period for the Restart Fund within the year so that everyone facing difficult circumstances can feel supported by the nation.”‘,
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