The objective of the Taiwan SMEG is to provide credit guarantees to those small and medium enterprises (hereafter referred to as “SMEs”) in normal operation but short of collateral for external financing. With guarantees provision, the Taiwan SMEG helps these enterprises to smoothly secure financing from financial institutions (hereafter referred to as “FIs”). The operation of the Taiwan SMEG is in line with the government’s financial and economic policies to assist SMEs.


SMEs play an extremely important role in Taiwan’s economic development. In early 1970’s, a large number of SMEs suffered from the recession and inflation brought about by the oil crisis. At that time, the FIs turned to be conservative and requested very stringent collateral requirements on SMEs’ loan applications. SMEs thus encountered great difficulties in obtaining financing. To cope with these situations, the Taiwan SMEG was established in 1974 to strengthen the financing assistance to SMEs.

Sources of Funds

Funds of the Taiwan SMEG come mainly from donations made by the central government, local governments, and contracted FIs. Up to the end of 2020, donations received have totaled NT$151.42 billion, 71.82% of which are from the central and local governments and 28.18% from the contracted FIs. As of the end of 2020, Taiwan SMEG’s net worth totaled NT$76.42 billion.




1.To help SMEs suffering from the COVID-19 pandemic, various relief and revitalization credit guarantee programs that were supported by the government agencies were launched.

2.To comply with the government’s "Young Entrepreneur Dreams Program," the guarantee program of Loans for Young Entrepreneurs and Start-ups was amended to provide preferential guarantee conditions.


Preferencial Credit Guarantee Project for Micro Business Loans of Hundred-Billion was launched to help SMEs secure financing from FIs.


Service Center in Hualien was established.


Both of the amount guaranteed and the loan supported by the credit guarantee broke the NT$1 trillion mark.


Service Center in Tainan was established.



Co-guarantee project was introduced. Under this mechanism, the leading public or private companies of various industrial sectors donate funds to cooperate with Taiwan SMEG, aiming at enlarging guarantee targets and lowering guarantee risk. The government agencies and local governments joined the project afterwards.


The virtual Torchbearer Institute, renamed as Taiwan SMEG Institute afterwards, was established, serving as a platform for SMEs to share and exchange experiences.



Direct Guarantee was launched, to help those SMEs having ability of R&D, business management or market development apply for credit guarantees to Taiwan SMEG directly.



1. The supervising agency of the Taiwan SMEG was changed from the Ministry of Finance to the Ministry of Economic Affairs.

2. Portfolio Guarantee was introduced, which features fulfilling guarantee responsibility within the total amount of payment risk for respective contracted FI set up in advance. It streamlines guarantee processing procedures, and helps contracted FIs conduct guaranteed financing based on self-management.


The Liaison Offices in Taichung City and Kaohsiung City, renamed as Service Centers in Taichung and Kaohsiung afterwards, were established.


Taiwan SMEG was established as a non-profit organization.