What financial assistance does Taiwan provide to foreign businesses?
To help businesses gain easy access to capital, the Executive Yuan has proposed several projects to provide low-interest loans such as Purchase of Automatic Machinery, Loans to Help Upgrade Small-and-Medium-Sized Enterprises, Loans to Help Anti-Pollution Machinery for Local Businesses, and Loans to Help Promote Traditional Sectors. All companies interested in these loans should consult local or private banks. Loan interest rates will remain within the Chunghwa Post Office''''s public rates for two-year fixed deposits of 2.175-2.45%.
In order to encourage companies to upgrade technology service capabilities or engage in R&D, and to raise the added value of products or services, the Executive Yuan Development Fund is providing low-interest loans for manufacturing, Internet, and technology service companies engaging in R&D or investment projects. Loans rates are range between 1.5-2.5% (which includes yearly loan interest paid to the Development Fund and bank guarantor fees at 0.5-1.5%); if a Small-to-Medium Sized Enterprise is needed as a guarantor, then an additional processing fee is charged at 0.75% of the loan amount.
For more information, please refer to the website of the Executive Yuan Development Fund.
The government has also set up the Mid to Long Term Loan Program using the government''''s new postal savings account. Any private investment worth over NT$100 million can apply to its Competent Authority to submit a loan proposal to the Executive Yuan''''s Council of Economic Planning and Development. Other loan rates are mid-to long term fund use interest rates (currently 1.83%) including the banks raising quotas (limited to 2%)
For more information, please refer to the website of the Council for Economic Planning and Development.
