Overseas Credit Guarantee Fund Launches $300,000 Relief Program in Response to Tariff Impact

(Central News Agency Reporter You Kaixiang, Taipei, 12th) Overseas Community Affairs Council (OCAC) Minister Hsu Chia-ching stated today that while Taiwan-U.S. tariff negotiations have yet to yield results, Taiwanese businesses will inevitably need to adjust their investment strategies. Therefore, the OCAC is assisting the Overseas Credit Guarantee Fund (OCGF) in raising the maximum credit limit for global economically related entities from $2 million to $3 million. Additionally, a special loan guarantee program with a maximum limit of $300,000 will be introduced.

The OCAC held a press conference this morning titled "Overseas Credit Guarantee Fund Launches Relief Program for Overseas Taiwanese Businesses Affected by U.S. Reciprocal Tariffs." Attendees included OCAC Minister Hsu Chia-ching, OCGF Chairman Lin Pao-hsi, Asian Taiwanese Chambers of Commerce President Chen Shu-chin, and Latin American Taiwanese Chambers of Commerce Honorary President Chang Chung-pin.

Hsu pointed out that although Taiwan has not yet reached a final tariff agreement, countries in Southeast Asia and the EU have already established plans, compelling global Taiwanese businesses to adjust their investments and face two major challenges: "funding sources and talent mobility." Thus, the OCAC is leveraging its past experience in assisting Taiwanese businesses to provide support.

Hsu explained that the OCAC will guide the OCGF in adjusting the maximum credit limit for global economically related entities from $2 million to $3 million.

She also mentioned that the OCGF will launch a separate relief guarantee program targeting overseas Taiwanese businesses directly or indirectly affected by reciprocal tariffs, resulting in a 10% revenue decline. The program offers a maximum loan guarantee of $300,000, a 90% guarantee ratio, and a guarantee period of up to six years. The OCAC will subsidize guarantee fees for up to three years and partial interest (based on Chunghwa Post’s two-year time deposit floating rate) for up to six months. Applications must be submitted within one year of the program’s implementation.

Regarding eligibility, Lin Pao-hsi stated that businesses need only provide financial reports proving a 10% decline in U.S.-bound revenue over the past three years and demonstrate that over half of their shareholders are Taiwanese or overseas Chinese with Taiwanese heritage. Hsu added that the calculation period begins on August 7, so applications are expected to open by mid-September. She emphasized that while tariffs pose challenges and crises, they also present opportunities, urging businesses not to panic as the government will do its best to assist.

The OCAC noted that the OCGF collaborates with 200 financial institutions across 25 countries and 51 metropolitan areas. Affected businesses can apply at local partner banks; if none are available, they may apply through domestic banks’ Offshore Banking Units (OBUs) or Designated Foreign Exchange Banks (DBUs).