1.The National Youth Commission (hereinafter referred to as the NYC) set these guidelines to help young people set up their own businesses, create job opportunities, and promote national economic development.
2. The NYC is helping young people set up businesses in agricultural and industrial production and in the service industry.
3. Assistance provided by the NYC includes both pre- and post- start-up training, including:
3.1 Advice and guidance for young entrepreneurs
3.2 Capital guidance for young entrepreneurs
3.3 Management guidance for young entrepreneurs
4. Young people applying for business start-up guidance must meet the following conditions:
4.1 They must be citizens and residents of the ROC.
4.2 They must be between 20 years and 45 years old and possess work experience, or have received relevant training from a government-approved training agency.
4.3 They must have completed or been exempt from their military service.
5. In addition to complying with the regulations stipulated in the previous article, applicants for business start-up capital assistance must also fulfill the following conditions and regulations:
5.1 Individual conditions:
The person in charge of the business, or the investor, may not operate another business or hold other posts. Students studying for doctorate or master degrees, in further education programs, or in vocational courses, are not regarded as holding other posts.
If the business requires an individual professional certification or license, it must be the person actually holding the certification or license.
The amount of the loan applied for may not exceed the amount of registered invested capital.
If, however, the business does not need to be registered, the loan may not exceed the capital invested by the person in charge of the business or the investor.
If a married couple sets up a business together, only one of the two may apply for a loan, but the capital invested by the two may be combined.
5.2 Enterprise conditions
Unless relevant legislation stipulates otherwise, the company must be an actual operating agricultural or industrial production or service company founded and registered less than three years ago.
For a company requiring business registration, the registered capital invested by the applicant(s) must make up no less than half of the paid-up capital.
If the person in charge of the business does not submit an application loan, that person must still comply with Rule 4 and 5 of these guidelines and submit a Letter of Agreement agreeing to other investors applying for investment loans, for which the person in charge must accept shared liability.
6. When applying for a Youth Business Start-up Assistance Loan, the applicant must submit a Business Start-up Loan Plan together with a loan application in his or her name to the selected bank.
7. The Youth Business Start-up Assistance Loan is divided into a non-guaranteed and a guaranteed part. Loan period and repayment method are as follows:
7.1 The non-guaranteed loan runs over six years. Interest shall be paid monthly, beginning within 12 months after the loan has been issued. From the 13th month onwards, capital and interest shall be repaid in equal monthly installments over 60 months.
7.2 The guaranteed loan runs over 10 years. Interest shall be paid monthly, beginning within 36 months after the loan has been issued. From the 37th month onwards, capital and interest shall be repaid in equal monthly installments over 84 months.
If, however, the guarantee provided is not valid for 10 years, the guaranteed loan period shall be restricted to the actual validity of the guarantee.
8. Each application for a Youth Business Start-up Assistance Loan is limited to NT$4,000,000. Of this sum, the non-guaranteed loan is limited to NT$1,000,000. The total amount for one business is limited to NT$12,000,000. Of this sum, the non-guaranteed loan may not exceed NT$3,000,000. The above restrictions on the loan amount shall not apply to applicants who have received guided business training in a Small and Medium Enterprise Incubation Center . The non-guaranteed part of the loan may be NT$1,500,000 per person
9. Applicants for a guaranteed loan shall provide collateral. Applicants for non-guaranteed loans shall follow the issuing bank's credit regulations. If necessary, they must submit an application to the Small & Medium Business Credit Guarantee Fund asking it to guarantee 80 percent of the loan.
10. The interest rate for the Youth Business Start-up Assistance Loan is calculated by adding 1.45 percent to the floating interest rate for two-year postal savings deposits. When asking the Small & Medium Business Credit Guarantee Fund to guarantee a loan, a handling fee shall be calculated according to the regulations.
11. Should the NYC amend the regulations in these guidelines concerning applications for this loan, the interest rate in effect at the issuing bank shall be applied at the time the loan is issued.
12.T he Youth Business Start-up Assistance Loan shall be applied to expenses directly related to capital and operations. It may not be transferred for other uses.
13. In principle, the chosen bank shall be located where the applicant’s business is operated. The applicant shall choose the bank and submit the application. The same applicant may not submit an application to more than one bank. If it is discovered that the applicant has obtained two loans, the preferential interest rate shall be invalidated and the issuing bank shall retrieve principal and interest.
14. The capital required for the Youth Business Start-up Assistance Loans is jointly provided by the Sino-American Economic and Social Development Fund under the Council for Economic Planning and Development, the Executive Yuan, and the issuing bank. The total annual amount available for Youth Business Start-up Assistance Loans is limited to the amount raised by the NYC in any given year. When the capital has been exhausted, the issuing bank shall temporarily stop handling applications for Business Start-up Loans.
15. After applicants receive the Business Start-up Loan, it shall be used according to the business start-up plan. If it is discovered that the loan is used for other purposes, or that the applicant is not operating the start-up business within three years after receiving the loan, the issuing bank shall retroactively retrieve interest from the applicant by adding 7 percent per annum to the floating interest rate for two-year postal savings deposits. It shall also retrieve the full loan amount and interest. If documents submitted by the applicant are forged or changed, or if the submitted start-up plan is untrue, or if there are other violations of these guidelines, and if the loan has not yet been issued, the application shall be declared invalid. If the loan has already been issued, the approval shall be rescinded and the bank shall handle the matter pursuant to the previous regulation. Major violations shall be handled pursuant to the law.
16. If the loan is not repaid on time, the issuing bank may rescind the preferential interest rate and request payment with 1 percent per annum added to the interest rate. It shall also submit the information regarding the overdue loan to the Joint Credit Information Center , requesting that the center set up a file for customers with a poor credit history and make that file available to financial institutions. For those who have already paid off their loan, the issuing bank shall submit the information regarding the overdue loan to the Joint Credit Information Center requesting that it invalidate the record.
17. Six months after a company has received a Youth Business Start-up Assistance Loan, both the original applicant and the original person in charge (if they meet the regulations in rule 4 and 5 of these guidelines and are still working in the company) may, if operations are proceeding normally and if debt credibility is good, apply for a part of the total loan amount specified in rule 8 of these guidelines that has not yet been applied for, if it does not exceed the registered capital. Within three years after the approval of the first loan, they may continue to apply for a loan from the issuing bank six months after the approval of the previous loan. When applying for further loans, the company's registered capital shall be increased by the amount of each previously approved loan in the name of the original applicant. That person's record of repayment for each previous loan shall also be submitted. The added investment capital may not be used to transfer the original shares of the start-up or as yield for the capital invested by the original applicant. The total of each previously approved loan and the amount currently applied for may not exceed the registered capital after the increased capital resulting from the approved loans has been deducted. The amount of the loan currently applied for may not exceed the amount of the registered capital by which the applicant is intending to increase.
18. The NYC will set further guidelines to strengthen assistance following the start-up of a youth business.
19. The NYC may hire an Honorary Youth Business Start-up Consultant to strengthen interregional youth business start-up contact services. The NYC will set further relevant hiring and operation guidelines.
Updated Date 09-11-30