:::
You are here: Home > Finance Loan Program > Taipei City Government SMEs Finance Loan Program
  • Print
  • Forward
  • Go Back

Taipei City Government SMEs Finance Loan Program

Implementation Guidelines for Taipei City Government SME Finance Loan Program

Fu-Chan-Ye-Ke-Zi No. 09830019700 promulgated on Feb. 23, 2009
Amended on Dec. 2, 2010 via Fu-Chan-Ye-Ke-Zi No. 09934149100
Amended on Jul. 31, 2012 via Fu-Chan-Ye-Ke-Zi No. 10132288501
Amended on Oct. 4, 2012 via Fu-Chan-Ye-Ke-Zi No. 10133033800
Amended on Aug. 5, 2014 via Fu-Chan-Ye-Ke-Zi No. 10331976800
Amended on Dec. 1, 2015 via Fu-Chan-Ye-Ke-Zi No. 10432627602
  1. To activate the economy of Taipei City (hereafter referred to as the City), assist small and medium enterprises to develop their businesses and provide financing credit guarantees, Taipei City Government (hereafter referred to as the City Government) specifically set up the Guidelines.

  2. The competent authority of the Guidelines is the Department of Economic Development (hereafter referred to as the DOED), Taipei City Government.
    The capital of the Taipei City Government SMEs Finance Loan Program (hereafter referred to as the Loan) shall be provided by the financial institutions undertaking the loan program.

  3. Those persons/entities that meet any of the following terms are eligible to apply for the Loan:
    (1) Type 1: ROC nationals registered in the City, aged above 20 years and below 45 years, and engaged in a small business not requiring business registration but having tax registration.
    (2) Type 2: The small and medium enterprises, businesses or limited partnership companies which have been registered by law with the registration address in the City.
    (3) Type 3: Those that meet the qualifications specified in Type 2 and are engaged in businesses related to information communications technology, bio-technology, green energy, health care, cultural creation, leisure and quality agriculture, tourism or other strategic industries involving R&D, design, creativity or with distinctive features.

  4. The maximum quotas of the Loan are one million, four million and five million NT dollars for Types 1, 2 and 3, respectively. However, in case of any of the following situations occurring to Type 3, the maximum quota of the Loan can be increased to ten million NT dollars.
    (1) Working on international division of labor, international deployment, technical cooperation, operation/management or marketing with international enterprises.
    (2) Introducing foreign high-end technologies or talents into Taiwan.
    (3) Investing in brand guidance or design service.
    The Loan shall be granted only once to each applicant. However, those who have fully cleared the Loan, are in normal business operation and have good bond and bill credit are eligible to apply to the DOED for the Loan again.
    Before the abolishment of the "Implementation Guidelines for Taipei City Government's SMEs Strategic and Innovative Upgrading Finance Loan Program", the lenders that have already applied to the DOED for a loan according to the abolished Guidelines, of which the loan was approved by the DOED, may follow the stipulation stated in the preceding paragraph to apply for the Loan if their aforesaid loan has been fully cleared, their business is operating normally and their bond and bill credit are good.

  5. The Loan shall be used only for the purchase of plants, business sites, machines and equipment or as the business's revolving fund.
    Those who apply for the Loan for the purchase of plants, business sites, machines or equipment shall complete the purchase within six months prior to the application day, while those who apply for use of the Loan as the business's revolving fund shall have more than two years of actual business operation before the application day.

  6. The maximum period of the Loan is five years and the maximum grace period of the principal is one year. The principal and interest shall be paid once a month. Except for the grace period, the principal and its interest shall be amortized on a monthly basis.
    After the Loan is released, the loan undertaking financial institution may adjust the payment periods and method as required by individual cases, which shall not be restrained by the stipulation in the preceding paragraph.

  7. The interest rate of the Loan shall be calculated by adding an annual interest rate of 1.45% to the variable rate of the 2-year term deposit adopted by Chunghwa Post Co., Ltd.

  8. The DOED may offer interest subsidies according to the economic status. The relevant subsidy measures shall be announced by the DOED.
    For the preceding interest subsidies, the loan undertaking financial institution shall file the application with the DOED on a monthly basis, with the data covering the lender's monthly payment details, overdue collection, compulsory execution, etc.

  9. In case that the lender encounters any of the following situations in his/her business, s/he shall notify the DOED in writing within three days after the occurrence of said fact. Upon receiving the notice, the DOED shall suspend the interest subsidy and notify the lender and loan undertaking financial institution of it. The interest to be paid after suspension of the subsidization shall be borne by the lender:
    (1) Business suspension or shut-down.
    (2) Relocation of the registration address out of the City.
    (3) Failure in amortizing the monthly loan principal.
    (4) Change of the responsible person or representative of the company included in Type 1 application cases.
    (5) As negotiated with the loan undertaking financial institution, the loan period and amortization method can be adjusted after release of the Loan.
    After the preceding situations resulting in suspension of interest subsidies
    disappear, the DOED shall continue to subsidize the interest according to the application filed by the lender. However, if the lender does not follow the regulation to notify the DOED, the DOED may discontinue the subsidies.
    For Item I listed above for suspension of the interest subsidies, the DOED shall regularly check once a month. When necessary, it may conduct irregular checks.
    If the DOED finds that the lender encounters Item (1) listed above in its check, it shall suspend the interest subsidy and notify the lender and loan undertaking financial institution, and the interest subsidy shall not be continued in the future.

  10. For the Loan, the City Government shall allocate 150 million NT dollars to the Small and Medium Enterprise Credit Guarantee Fund of Taiwan (hereafter referred to as the Taiwan SMEG), while the Taiwan SMEG shall correspondingly offer 150 million NT dollars. As a result, a total of 300 million NT dollars is available for the expenditure required by the Loan to fulfill its guarantee liability (including sharing litigation fee). The total amount of the credit guarantee set for the Loan shall be 300 million NT dollars.
    The City Government and Taiwan SMEG may increase the amount as required by the business needs of the Loan.

  11. The expenditure required by the Loan for fulfilling the guarantee liability shall be handled in accordance with the contract between the City Government and Taiwan SMEG.

  12. The responsible person of the enterprise that takes out the loan shall be recruited as the joint guarantor for the Loan. If it is a limited partnership company, its representative shall be recruited; in addition, other guarantors with sufficient financial capacity shall be additionally invited to guarantee the Loan if required by the application case.

  13. The guarantee ratio of those who apply for the credit guarantee according to the Taiwan SMEG-related regulations and who had a business turnover over five million NT dollars in the previous year shall be 90%, while it shall be 95% for those who has established the business for less than one year or had a business turnover less than 5 million NT dollars in the previous year. The guarantee service fee shall be calculated on the basis of 0.5% of the fixed annual fee.

  14. Except for the credit guarantee service fee and required credit check fee, the loan undertaking financial institution shall not collect any extra fees from the applicant.

  15. For those who are classified as Type 1 and exempted from business registration, the application for the Loan shall be filed by the responsible person of the business. For those who are classified in Types 2 and 3, the application shall be submitted in the name of the company, business or limited partnership.

  16. The applicant shall submit the following documents to the DOED when applying for the Loan:
    (1) Loan application.
    (2) Copy of both sides of the responsible person's ID card.
    (3) Business plan.
    (4) Affidavit.
    (5) Tax registration certificate, company registration certificate, business registration certificate or other certificate documents for the registrations made by law.
    (6) The comprehensive credit report issued by the Joint Credit Information Center.
    (7) Other necessary supporting documents requested by the DOED.
    For the report in the preceding Item (6), the applicant shall agree to have the loan undertaking financial institution assist in the application. However, the application fee shall be borne by the applicant.
    If the documents submitted for an application are incomplete, the DOED will notify the applicant to submit the supplementary documents within a specified time period. In case that the applicant fails in submitting the supplementary documents in due time, or the documents remain incomplete after further document submission, the application will be rejected.

  17. The Loan shall be examined by the Review Panel for Taipei City Government's SMEs Finance Loan Program (hereafter referred to as the Review Panel) set up by the DOED. The Review Panel shall examine the applicant's qualifications, financial structure, capital usage, business status, business prospects, loan quota, loan period, grace period, etc. The DOED will issue an approval notice for the Loan passing the examination.
    The applicant shall apply for the Loan to the loan undertaking financial institution within three months after the day following the day of receiving the approval notice. In case that the application is not filed in due time, the approval notice will become invalid. If this is the case, the applicant shall re-submit the application to the DOED.

  18. The Review Panel shall consist of at least nine members; one of them shall be the concurrent convener who is the director of the DOED or someone designated by the director, while the remaining concurrent members shall be designated (appointed) by the DOED from the following personnel:
    (1) One representative each from the DOED, Department of Finance and Taipei City Office of Commerce.
    (2) One representative each from the Taiwan SMEG and Taipei Certified Public Accountant Association, two representatives from the loan undertaking financial institutions and one to three representatives from among industrial and academic experts or entrepreneurial consultants.
    The members of the Review Panel are all in a position without pay. They shall attend panel meetings in person and shall not appoint any proxy to attend the meetings on their behalf.

  19. The Review Panel shall hold monthly meetings. However, depending on the requirements of received cases, additional meetings can be held when necessary, and related organizations shall be invited to dispatch their personnel to attend the meeting.

  20. Any resolution of a review panel meeting shall be adopted by a majority of the members present at the meeting attended by more than two-thirds of the Review Panel members before execution.

  21. In case that the Review Panel members encounters any of the following situations, they shall avoid the conflict of interests and excuse themselves from the examination:
    (1) The member or his/her spouse holds a post at the business run by the applicant or is within one year after leaving the post.
    (2) The member or his/her spouse is the spouse, direct relative or collateral relative within third degree of kinship of the responsible person, founder, director, supervisor or manager of the business run by the applicant, or the shareholder holding more than 10% of the shares of the applicant's business.
    (3) The member or his/her spouse has the joint venture or shares profits with the responsible person, founder, director, supervisor or manager of the business run by the applicant, or the shareholder holding more than 10% of the shares of the applicant's business.
    The information learned by Review Panel's members in the examination process shall be kept confidential.

  22. The City Government shall stop processing the Loan when the Loan's total credit guarantee financing amount is used up, or the overdue guarantee balance amount plus the compensatory balance amount reach one-tenth of the total credit guarantee financing amount.

  23. In case that any of the following situations occur to the applicant, the loan undertaking financial institution shall suspend the loan release and submit the case to the Review Panel for examination.
    (1) The enquiry through the Taiwan Clearing House found the applicant has a rejected account, or the number of the dishonored checks without the payment remarks reaches the level of becoming a rejected account.
    (2) The enquiry through the Joint Credit Information Center or the credit check process found any of the following situations: the principal of a debt is overdue and has not be amortized; the agreed installment payment has been delayed for more than one month; the accrued interest has not be paid and delayed for more than three months, or the credit card issuing bank compulsorily suspends the card due to applicant's failure in clearing the credit card consumption amount in due time. However, it is not limited to the circumstance where the applicant has already cleared the debt or credit card debt.

  24. When processing the Loan, the loan undertaking financial institution shall truly follow the loan approval operation regulations, the credit check regulations and the Implementation Guidelines.

  25. The loan undertaking financial institution shall properly retain the Loan-related data for future checks by the City Government and Taiwan SMEG.

  26. The document formats required by the Guidelines and the terms for the Loan rejection shall be determined by the DOED.

  27. The Guidelines taking effect after the amendment made on Sep. 15, 2014 shall be applicable to the examination of loan application cases and the approved cases occurring before the abolishment of the "Implementation Guidelines for Taipei City Government SMEs Strategic and Innovative Upgrading Finance Loan Program".

  • Hit: 10795
  • Updated: 2016/2/5 14:17
  • Reviewed: 2016/2/5 14:17

  • Source: Department of Economic Development ,Taipei City Government