In response to criticisms from the media that the government''s policy of facilitating the provision of relief loans to small business entities, which was implemented on April 20, has failed to deliver the expected benefits, the FSC expressed that the relief loan program was formulated to meet the needs of the majority of small business entities, so the program''s design has been kept very simple. The application review process has the following characteristics:

1. The maximum loan amount is NT$500,000 per loan, and the interest rate will not exceed 1% before March 27, 2021. The Small and Medium Enterprise Credit Guarantee Fund of Taiwan will guarantee up to 100%.

2. No need to pledge real estate as collateral: As long as the entity or the proprietor has real estate, the applicant''s credit score will reflect that fact, regardless whether the property is mortgaged to a bank.

3. No need for a joint and several guarantor: It doesn''t matter if a person can''t find a guarantor. A guarantor is not needed.

4. No need for uniform invoices: Small business entities with sales of less than NT$200,000 per month, which are exempt from the requirement to issue uniform invoices, can still apply.

5. Taxation registration is sufficient: It is important that only entities with taxation registration can apply.

6. Normal credit rating is sufficient: It does not matter whether people have never borrowed money from the bank or ever had a credit card and the Joint Credit Information Center does not have information on them. They can still get a level-two credit score.

 

In addition, the FSC gave two small reminders on procedure:

1. If there is no way to repay the principal within one year, a person can also negotiate with the bank to pay interest first, and then repay the principal in a single lump sum after it comes due.

2. Remember to apply to the bank before the end of December this year (2020).

 

Should you have any further questions, you may refer to the two Q&As attached below and ask a bank. If there are other financing issues, you can call 1988 or the One-stop Service Center of the Ministry of Economic Affairs. The FSC will make every possible effort to make sure everyone can get through the epidemic.