Taiwan Government Grants, Loans and Subsidies


The Taiwan Government, at both national and local levels, are very active source of grants, subsidies and incentives. We want to support innovation and job creation, so if you have some new and great, take a look. It’s highly suggested you carefully read up on all the rules, ask around to get valuable tips from experienced bidders, and call the contact people of each project to get answers to your questions.

Explanation of terms:

Grant – A financial award given by the government to an eligible grantee. Government grants are not expected to be repaid by the recipient.

Subsidy – A benefit given by the government in the form of a cash payment or tax reduction to help pay for an expense like for example hiring new employees.

Loan – An amount of money that has to be paid back after an agreed upon period of time.

Most government grants are matching grants. This means that you are supposed to invest money alongside with the government. The exact support programs vary from year to year but let us give you an overview of some national and Taipei City programs.

Small Business Innovation Research (SBIR)


The purpose of Small Business Innovation Research (SBIR) Jīngjì bù xiǎoxíng qǐyè chuàngxīn yánfā jì huà 經濟部小型企業創新研發計畫 grants are to “encourage Taiwanese SMEs to step up their development of innovative new technologies and new products”. Types of research encouraged by the program:

  •         Developing a brand new idea, concept or new technology.
  •         Applying an existing technology to a new application.
  •         Applying a new technology or business model to an existing application.
  •         Improving an existing technology or product.
SBIR has three phases, described officially as:

Phase I: Feasibility Study

xiānqí yánjiū 先期研究 – Governmental subsidy for 6 months and up to NT$1,000,000. A small-scale experiment or statistical analysis of the creative concept that can potentially benefit industries to validate a concept.

Applicants must describe the key problems addressed, the creative concept they intend to use, anticipated benefits to industries, as well as relative R&D track records and implementation plans.

Phase II: Principal R&D

yánjiū kāifā 研究開發 – Subsidy for 2 years and up to NT$10,000,000 for R&D of a product, production method or service mechanism based on a tangible and feasible creative concept. The R&D of a production method can extend to the trial production or ramp-up stage.

Applicants must describe the key problems addressed, the creative concept, anticipated benefits to industries, R&D track record and implementation plans.

Phase II+: Commercialization

jiā zhí yìngyòng 加值應用 – NT$5,000,000 subsidy for 1 year to implement and reach wide application of R&D results from Phase 2 to meet market demand. Focus on technical innovations; engineering techniques, mold development, product design, trial production and ramp-up techniques, or market surveys.

Applicants must describe the application of the developed technique, feasible implementation, commercialization target and expected benefits.

Past SBIR winners: http://sme.moeasmea.gov.tw/startup/modules/funding/detail/?op=highlight&sId=2

For information regarding how to apply, see the website: www.sbir.org.tw

Any questions, call 0800-888-968

Taiwan SME Innovation Award

zhōngxiǎo qǐyè chuàngxīn yánjiū jiǎng 中小企業創新研究獎 – It is always nice to be recognized. Every year for the last 22 years, the Executive Yuan has recognized outstanding SMEs that have invented innovative products, skills or services within the same year as they are applying. Only companies whose research budget is lower than 2% of their annual turnover are eligible.

Award amount : NT$ 300,000

Contact: (02)2366-0812#122

SME Innovation Development Project Loan

zhōngxiǎo qǐyè chuàngxīn fāzhǎn zhuān’àn dàikuǎn 中小企業創新發展專案貸款 – For legally registered companies in Taiwan, if they fit in any of these requirements they are eligible to apply for this loan:

  1. The responsible person of the company is aged between 20-45 years old.
  2. Company has won an innovation prize from the government.
  3. Company has received subsidies for research purposes from the government.
  4. Company has cooperated with overseas companies, governments or academic institutions or has been commissioned by overseas
  5. Companies provide development services for research purpose.
  6. Company has won enhanced investment SMEs project from the government
  7. Company has research or production center in a national science park.
  8. Company has registered at the Taipei exchange center.

Award amount : NT$ 10 million for revolving fund, capital expense can be up to NT$50 million

Past winners: http://sme.moeasmea.gov.tw/startup/modules/funding/detail/?op=highlight&sId=4

Contact: 0800-056-476

Cultural Creativity Industry Special Loan

wénhuà chuàngyì chǎnyè yōuhuì dàikuǎn 文化創意產業優惠貸款 – This loan is available for companies registered as “cultural creativity” companies, for example advertising, architecture, artifact, art, design, fashion, film, music, performing arts and publishing.

Award amount : 80% of the project or up to NT$30 or 100 million.

Past winners: http://sme.moeasmea.gov.tw/startup/modules/funding/detail/?op=highlight&sId=6

Contact: (02)2713-6450

Small Enterprise Loan

qǐyè xiǎo tóu jiā dàikuǎn 企業小頭家貸款 – This loan is targeting legally registered companies with less than 5 employees and is provided from private banks.

Revolving fund : Up to NT$5 million

Capital Expense : Up to 80% of the project

Contact: 0800-056-476

National Development Fund Startup Angel Project

xíngzhèng yuàn guójiā fāzhǎn jījīn chuàngyè tiānshǐ jì huà 行政院國家發展基金 創業天使計畫 – The angel fund is investing in companies that are about to register or that has been running for less than 3 years as sole proprietorship or partnership.

Award amount : Up to 80% of the project
Contact : 02-25778518#890 or #344

Service Industry Innovation Research (SIIR)

fúwù yè chuàngxīn yánfā jì huà (SIIR) 服務業創新研發計畫(SIIR) – Research grant for companies legally registered in Taiwan, not including branch offices, with positive equity in the retail, logistics, restaurants, advertising, e-commerce industries.  

Award amount : Up to 50% of the project
Contact : 02-2701-1769#231~241

Industry Level-up Startup Platform Guidance Project

chǎnyè shēngjí chuàngxīn píngtái fǔdǎo jì huà-yánfā dàikuǎn jì huà 產業升級創新平臺輔導計畫-研發貸款計畫 – This grant is for companies in the internet, manufacturing, and cultural creative industries conducting innovation or development projects to increase the added value of products or services.

Award amount : Up to 80% of the project or up to NT$65 million
Contact : (02)2700-7500

SME National Development Fund Investment

yùnyòng guó fā jījīn tóuzī zhōngxiǎo qǐyè 運用國發基金投資中小企業 – This investment is aimed for domestic SMEs with potential but not yet go public, and need money for new investments, cooperations, international technology transfers.

Award amount : Depends
Contact : 02-23680816#342 or email to smeinvest2@moea.gov.tw

Taipei City Industry Incentive Subsidy Project

táiběi shì chǎnyè fāzhǎn jiǎnglì bǔzhù jì huà 臺北市產業發展獎勵補助計畫 – Taipei City stands out among the local governments in Taiwan because they accept applications for incentives in English.

Companies registered in Taipei or SMEs are eligible to apply.

Award amount : Up to 50% of the project or up to NT$5 million
Contact : 1999#1429 or 1428

Most cities have a some business support. Check with the city hall in your city to find out what they can do for you.

Grants can be a great way to leverage other investment into your company. While there might feel like a lot of paperwork, also keep in mind that you are not giving up any equity or even interest payments.

Don’t take our word for it. Here are a couple of international entrepreneurs that has received government grants.

Grant Case


 

govgrants-woogo-juice

WooGo Juice is a smoothie shop set up in 2012 by a group of International entrepreneurs.

From the very beginning they had big dreams, not just for selling great tasting smoothies, but also for building a business with a positive impact on society. One of their key issues from the very beginning was employee development. They realized that finding, developing and retaining the best employees would be the key their success. When they set up their first store they could need all the support they could get they turned to Taipei City Department of Economic Development (DOED). DOED must have seen something special in this company because they approved a subsidy to cover half their rent for two years.

WooGo Juice has since taken off and now have 7 locations around the greater Taipei area.

For more information, see

http://woogojuice.com

http://startabusinessintaiwan.tw/blog/409-interview-with-woogo-juice

 

Got Money?

Have you received any support from the Taiwan government? We would love to hear your story. Or do you have any questions or concerns we can assist with? Do not hesitate to contact us.