Summary of application qualifications and application methods for Youth Entrepreneurship Support Fund
Youth Entrepreneurship Support Fund
Young people who start a business often start with a financial burden by receiving loans with high interest for most of the start-up funds. In this case, you can use the youth entrepreneurship subsidy system. The Youth Entrepreneurship Support Fund is a system for young people, and only those between the ages of 19 and 39 can apply for Zero, which lends start-up funds at an interest rate of 2%. It is a system that allows you to borrow up to 100 million per year after checking various criteria including age. Today, let’s talk about the Youth Entrepreneurship Support Fund.
Eligibility to apply for Youth Entrepreneurship Support Fund
Youth Entrepreneurship Support Fund is a system for young people between the ages of 19 and 39. There are no restrictions on academic background or major, and if the age conditions are met, it is divided into preliminary founders and existing founders, and the criteria for screening are also different depending on the preliminary and existing founders.
Review criteria for prospective founders
Competence of prospective representatives
credit rating
Future development of entrepreneurship-related businesses
Review criteria for existing founders
Entrepreneurs with less than 3 years of business experience
industry experience
sales
debt ratio
After comprehensively checking the above, you can apply for the Youth Entrepreneurship Support Fund.
However, in the case of a prospective entrepreneur, you must apply for the Youth Startup Support Fund and proceed with business registration to obtain a business registration certificate.
Then, what about the contents of the Youth Entrepreneurship Support Fund?
Contents of Youth Entrepreneurship Support Fund
If you pass the application qualification for the Youth Entrepreneurship Support Fund and receive final approval, you can support up to 100 million won at a fixed interest rate of 2% per year within 70% of the project cost.
Support for up to KRW 200 million at a fixed interest rate of 2% per year is available for regionally specialized industries or manufacturing industries. The funds received can be used for facility and operating funds, and you can also receive entrepreneur mentoring from the Small and Medium Business Corporation.
facility funds
Funds for introduction of production facilities and test equipment
Funds such as informatization promotion and service provision
Funds such as stability assessment and process installation
Funds for distribution and logistics facilities, etc.
Construction funds for business sites, rental deposits, land purchase funds
Funds to secure business sites (purchase, auction, public sale)
working capital
start-up cost
Funds such as product production costs and corporate management
Loan limit: within 100 million won per year (locally specialized flagship industry or manufacturing industry: within 200 million won)
Interest Rate Interest: Fixed 2%
Loan method: direct loan
Loan period: 1. Facility funds – within 10 years (grace period – 4 years, in case of providing collateral), 3 years (in case of credit) / 2. Working capital – within 6 years (grace period – 3 years)
Procedure: Apply for and receive funds -> Completion of training -> Implementation of mentoring and evaluation of business plans -> Loan support after loan decision
How to apply for Youth Entrepreneurship Support Fund
The Youth Entrepreneurship Support Fund can only be applied online on the website of the Small and Medium Venture Business Promotion Corporation.
Small and Medium Venture Business Corporation website https://www.kosmes.or.kr/intro/kosme_intro.html
How to apply for Youth Entrepreneurship Support Fund 1
How to apply for Youth Entrepreneurship Support Fund 1
After logging in, click the policy fund online application shortcut, log in, and click ‘Online application reservation -> Information provision consent (corporate and personal certificate required) -> Business diagnosis and checklist preparation -> Pre-consultation -> Online application submission -> Company evaluation and decision’, and companies wishing to receive funding for the current month must apply by the end of the previous month.
How to apply for Youth Entrepreneurship Support Fund 2
How to apply for Youth Entrepreneurship Support Fund 2
– Reservation: Consultation is available only after making a reservation for policy fund online application. Select Regional Headquarters -> Only companies that have selected the desired consultation date can proceed, so you must make a reservation.
– Preliminary company diagnosis and checklist: This is for companies wishing to receive support for the Youth Startup Support Fund to check their eligibility, and must be completed prior to the consultation appointment date.
– Pre-consultation: Consultation is conducted with or without a visit to the regional headquarters under the jurisdiction of the Small and Medium Venture Business Corporation.
If you pass through the 6 steps, you can receive the youth entrepreneurship support fund.
You can start a business with less burden because you can get it at a fixed interest rate that is cheaper than taking out a loan elsewhere. If you are a young person planning to start a business, the Youth Startup Support Fund is a good system.
Today, we learned about the qualifications and how to apply for the Youth Entrepreneurship Support Fund.