SME Upgrading Loans of the Development Fund

Qualified Applicants:
Small and medium sized enterprises confirmed by the government regulation.

Purpose:

1. Investment plan to purchase automatic machines and equipments.
2. Investment plan to purchase commercial automatic machines and equipments.
3. Investment plan to develop new techniques or manufacture new products (including purchase of factory buildings and equipments, molds and R&D expenses, etc.)
4. Working capital required by companies producing automatic equipments.
5. Investment plan to purchase computer software and hardware.
6. Investment plan to purchase land in the industrial parks.

Maximum Amount:

80% of the predicted cost, with maximum amount of NT$60 million.

Interest Rate:
The interest rate is calculated by adding 2.25% to the interest rate of two-year time savings deposits of the Postal Savings.

Period:
1. For items 1 and 2 above: maximum seven years, with two-year grace period.
2. For purchase of factories and equipments in item 3 above: maximum ten years, with three-year grace period.
3. For purchase of molds and R&D expenses in item 3 and items 4 and 5 above: maximum five years, with one-year grace period.
4. For item 6 above: maximum fifteen years, with three-year grace period.

Collateral:
The applicant should provide collateral accepted by the Bank or guarantee by Trust Guarantee Fund.